Brexit does not Impact Taiwanese Fastener Industry in the Short Term but Might in the Long Term

In the report by the Ministry of Economic Affair (Taiwan), the fastener industry of Taiwan states that UK's exit from the EU (so-called as "Brexit") will not affect the industry in the short term, whereas the hand tool industry states that UK's drop in domestic demand and the change in exchange rate will pose an impact.

Automotive component makers say there will be more trade barriers in the European market and that their short-term sales will decrease. Machinery makers say Brexit does not obviously affect the industry for now, but they are concerned about the possible demand slowdown in the long term.

After the referendum, the UK will have to re-negotiate with South Korea on FTA, and accordingly Taiwan will have a chance to compete with South Korea fairly.

In 2015, Taiwan exported USD 3.78 billion worth of goods to the UK, including mobile phones, screws, nuts, bikes, and automotive components. The value accounts for 1.35% of Taiwan's total export value. UK is Taiwan's 3rd largest export destination in Europe.