SHANGHAI, March 13, 2018 (Newswire.com) - Businesses in the UK and European Union could be in for an additional 58 billion pounds in yearly costs if there is a no-deal Brexit. Ashton Whiteley economists say the UK’s financial sector will be the hardest hit in this event.
Companies in countries outside the UK will be liable for approximately 31 billion pounds in annual tariff fees if the UK leaves the European Union without a deal. Without a Brexit deal, UK exporters will have to fork out 27 billion pounds a year.
Ashton Whiteley economists say that these increased costs could pose a very real threat to many businesses as they could potentially reduce profits significantly.
The UK has only a year to go before it is due to leave the European Union and end more than 40 years of ties with bloc.
Without a Brexit deal agreed between the UK and the EU before March next year, trade between the two sides would default to rules and regulations as laid out by the World Trade Organization. This would be a big adjustment from the freedom and access the UK is accustomed to as a member of the European Union’s single market.
While Britain would prefer to reach an agreement with the European Union, the British government is preparing for all eventualities and has reserved 3 billion pounds to help deal with the fall out if it ends up leaving the world’s biggest trading bloc without a deal.
Ashton Whiteley economists say that if the UK remains in a type of customs union it would halve the costs for both Britain and the European Union.
Source: Ashton Whiteley