UK and EU firms could suffer damage of additional £58 bln yearly in case of Brexit with no agreement, while Britain’s enormous financial sector will incur the biggest losses, Monday’s report says.
Companies of 27 EU countries excluding the United Kingdom will need to spend £31 bln every year in tariff and non-tariff barriers if no agreement is reached concerning Britain’s exit from the Union, according to the report by two companies – Oliver Wyman and Clifford Chance.
On the other hand, Britain’s producers selling to the EU will need to spend £27 bln yearly. The UK is to exit from the bloc in 2019 after the referendum that showed willingness to cut 40-year-old ties with the largest trading union in the world.
Brexit with no agreement will bring trade between the parties to regulations and tariffs of the World Trade Organization, which is a striking difference from what the UK had being a member-state of the European single market.
Despite Britain’s desire to come to an agreement, the government makes it clear that it is bracing for any variant, one of them that the country could part from the EU reaching no accord. A special reserve of £3 bln was established to cope with any ramifications.