30 January 2018
According to a intercepted report of the Brexit by the British government, every Brexit scenario will decrease their growth in the future. Almost every sector takes a hit with the Brexit, but the sectors that will get hit the most with every scenario are: Chemicals, clothing, manufacturing, food and drink, cars and retail.
Under a comprehensive free trade agreement between the UK and the EU, the UK growth would be 5% lower over the next 15 years, according to the analysis. The scenario where there is “no deal” would result in a growth reduction of 8% and the softest Brexit, where the UK keep their single-market acces through membership of the European Economic Area, would still result in a lower growth of 2%.
“This new analysis suggests that there could be opportunities for the UK in agreeing trade deals with other non-EU countries and deregulating in areas such as the environment, product standards, and employment law.”
“However, the analysis also casts doubt on the idea that these benefits would be enough to mitigate the losses to the economy caused by leaving the single market and customs union. Moving away from the existing set of rules and standards would also make it harder to trade with the EU in the future, and would be politically controversial domestically.”