German Companies Preempting Brexit With Extra Cost Clauses

With Brexit less than two months away, and no divorce deal in sight, some German companies are taking matters into their own hands to limit any damage to their businesses.

The small and mid-sized firms – albeit a small minority – say they can’t wait any longer to see what agreement, if any, will emerge between London and Brussels. They are taking steps to protect themselves should a chaotic British withdrawal lead to traffic tailbacks, heavier customs bureaucracy and rising delivery costs after March 29, the planned break-up date.



Kieselstein International, a maker of metalworking machines, has for example successfully introduced a clause into a contract to deliver goods to British Steel that puts the onus on the UK firm to bear the costs of any extra red tape linked to Brexit.

“We included a clause that says if delivery takes place after March 29 the goods cannot be delivered to the buyer’s warehouse but are to be picked up in Chemnitz,” managing director Jens Kieselstein told Reuters, referring to the town in Saxony where his business is based.

via Reuters

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza