Brexit: Free trade deals will not offset UK leaving the EU

According to a BBC Newsnight analysis, post-Brexit trade deals will not make up for the economic damage inflicted on the UK from leaving the EU. Independent trade experts from the UK Trade Policy Observatory (UKTPO) looked at the likely impact of US, Australian and New Zealand free trade deals. They found that even combined, new tariff-cutting agreements were likely to boost the UK economy by just 0.4%. A simple free trade deal would also depress the economy, UKTPO said.

The body said that moving from full EU membership to a simple deal with our closest trading partner -the objective enshrined in Boris Johnson's Withdrawal Agreement- would depress the economy's size by at least 1.8%.

A Conservative spokesperson said: "The prime minister's fantastic deal makes clear that we will have a future relationship based on free trade and friendly cooperation. By striking trade deals around the world we will create exciting new opportunities for British businesses."

Moving to an EU free trade deal and striking new free trade agreements with the US, Australia and New Zealand has an estimated negative impact on the UK economy of 1.4% in the UKTPO results - equivalent to £28bn, or £1,000 per household.

Independent trade experts from the UK Trade Policy Observatory (UKTPO) looked at the likely impact  of US, Australian and New Zealand free trade deals. They found that even combined, new tariff-cutting agreements were likely to boost the UK economy by just 0.4%.

Source: bbc.com


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