Published: Tue, March 13, 2018
People | By Leon Thompson

'No deal' Brexit could cost UK, EU companies 58 bln pounds

'No deal' Brexit could cost UK, EU companies 58 bln pounds

Companies in countries outside the United Kingdom will be liable for approximately 31 billion pounds in annual tariff fees if the United Kingdom leaves the European Union without a deal.

Britain and the EU are now trying to hammer out a post-Brexit trade deal, but London's insistence that it leave the customs union with the EU and its internal market.

"Businesses across the bloc without Britain will face costs of 37 billion Euros per year, while Britain will take a 32-billion-euro hit, " Chance said.

The possible adverse effects of a "no deal" Brexit scenario, especially on United Kingdom businesses, have been outlined by politicians and thinktanks, with many fearing that Britain exiting the European Union without a transition period or trade deal in place would unsettle firms due to the additional uncertainty.

"These increased costs and uncertainty threaten to reduce profitability and pose existential threats to some businesses", the report said.

Asus ZenFone 4 Android 8.0 Oreo Update Now Rolling Out
Additionally, Android Oreo update brings Background limits, Autofill, Smart text selection, and Picture-in-Picture mode. Although it took Asus quite some time to update these phones, it's still a very welcome sight.

Although Britain wants a deal, the government says it is preparing for any outcome, including the chance that Britain could crash out of the bloc without a deal. The authorities in London have already said they are preparing for any result, including failure to negotiate a deal for which they have provided additional funds of 3 billion GBP. Ideally, Britain would stay in the customs union and single market, said the BDI, options the British government has rejected.

A key point to highlight from the report is that 70% of the extra costs in the United Kingdom will be shared across just five industries - namely financial services, cars, agriculture and food and drink, consumer goods, and chemicals and plastics.

Goldman Sachs and UBS said last week they were starting to transfer some bankers to Frankfurt in preparation for the U.K.'s exit from the EU. On this background, the Central Bank of England warned that about 10,000 jobs in finance could be lost by the end of the year.

However, top US investment banks are now planning to hire far more people in London than anywhere else in Europe.

In the European Union, the automotive, agriculture, chemicals and plastics, consumer goods and industry sectors will suffer the worst blow.

Like this: