Brexit without agreement could cost the British 32 billion exports

Text by: RFI Follow

A Brexit without an agreement could be expensive in the UK. This is what emerges from a study by UNCTAD, the United Nations conference for trade and development. According to the UN organization, British exports to the European Union would drop by 14%.

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In a scenario without an agreement, the United Kingdom risks losing up to $ 32 billion in exports per year to the European Union. This would be due to the introduction of customs tariffs and non-tariff measures. The European market is indeed vital for the trade of the United Kingdom, it represents 46% of British exports. Another country would face similar difficulties, Ireland. Irish exports to the United Kingdom are forecast to decrease by 10%.

→ Read also: Brexit: the UK's “funny exit” from the EU

The UNCTAD study also indicates that even if a standard free trade agreement were to be signed with the European Union, British exports would still fall by 9%. A situation that could benefit developing countries. Their exports to the United Kingdom and to a lesser extent to the European Union would increase to make up for this trade deficit. In these developing countries, the sectors that could seize this opportunity would be the food, wood and paper industries.

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