French Finance Minister Brexit Has Exacerbated The UK Supply Chain Crisis.
Key Sentence:
- French Finance Minister Bruno Le Mer told the that the exit of the domestic market after Brexit had exacerbated the crisis in supply chains to Britain.
- "We are facing a similar situation," he said at the G7 meeting in Washington.
"But the fact that we are part of a significant internal market helps us deal with this predicament."British retailers this week warned of a possible Christmas Eve shortage due to delays at British ports and a lack of truckers.
His comments came as several UK retailers said they were risking congestion due to delivery problems during the Christmas shopping season.
At the same event earlier this week, British Chancellor Rishi Sunak told the that buyers could be reassured that ministers were doing "everything in our power" to resolve supply chain issues. Citing the global slowdown observed in ports like Felixstowe, Sunak said, however, "I'm sure there will be plenty of Christmas gifts anyone can buy."
"I don't want to criticize the British approach because it is the sovereign choice of the British people," Le Maire said.
"But you know, if you look closely at the current world situation, if you have the United States on the right and the rise of China on the other, then there's only one place left - and that's not Great Britain."
Le Maire said G7 finance ministers had also discussed new plans to permanently reduce dependence on East Asia and China, particularly by sharing supply chains and factories.
"We share the same values in the G7; in European countries, we share the same approach in the issue of the trade economy, so building this new value chain among partners and friends can be one of the solutions," he said.
"You have to put in the effort – you need huge financial investments that no country can make," said Le Mer, citing high investments in new technologies like hydrogen, artificial intelligence, or the cloud.
"When you talk about being more independent in semiconductor manufacturing, you have to put 50 billion euros (42.4 billion pounds) on the table just to build a new chip factory, so there's again one place between China and the US," and I think that will for Europe. "
G7 finance ministers agreed to work closely together to manage the crisis and ensure that supply chains are more resilient.
The G7 (Group of Seven) is the organization of the seven largest developed countries in the world. Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. Ministers and officials of member states meet, conclude agreements, and issue joint statements on world affairs.