Recently, under the fear of a no deal, Nautilus general secretary Mark Dickinson urged the UK to proceed to economic assurances in support and protection of the British maritime professionals. For the time being, the UK is under negotiations for the majority of its trade agreements; However, UNCTAD notes that in case that the agreements remain unsolved, Brexit could cost the UK billions in export earnings in key markets.
In 2018 the UK merchandise exports were about USD $450 billion. As showed in the graph, the EU is the leading trading partner the UK has and holds almost the half of the latter's merchandise exports.
The study estimates that in the possibility that the UK halts its EU market relations, it will result in UK export losses of about USD$16 billion.
Moreover, up to now the UK hasn't come to an agreement with Turkey, South Africa, Canada, Mexico, Japan, Egypt and Morocco; These countries are likely to seriously affect the UK's exports and result to large export losses.
The new UNCTAD research suggests that if these agreements are not concluded by exit day, it would cost the U.K. economy almost $2 billion in exports. Sectors such as apparel, textiles, motor vehicles and processed food products would face higher tariffs, with losses as high as $750 million in the motor vehicles sector.
In addition, the no-deal Brexit possibility will result to important market losses for the UK, as shown in the graph above. Specifically, sectors as agriculture, animal and vegetable products, motor vehicles or leather products will be affected, facing higher tariffs.
Overall, the no deal Brexit would bring immediate changes to the procedures that apply to businesses trading with the EU, meaning the halt on the existent free circulation of products between the UK and the EU.
For more information on the study click here.