UK exports could lose $2bn unless more deals concluded before Brexit

The UNCTAD research published on Tuesday shows that if more agreements are not concluded by exit day, it could cost the UK economy almost $2 billion, with sectors such as apparel, textiles, motor vehicles and processed food products facing higher tariffs.

The United Kingdom could lose close to $2 billion in exports unless more roll-over trade deals are concluded before Brexit, or the day the UK plans to leave the European Union, according to new research from UN trade body, UNCTAD.

Although some bilateral deals have been done with several countries which would allow the UK to continue with preferential access to the huge EU market, about 20 percent of UK non-EU exports are at risk of facing higher tariffs from countries such as Turkey, South Africa, Canada, and Mexico.

The UNCTAD research published on Tuesday shows that if more agreements are not concluded by exit day, it could cost the UK economy almost $2 billion, with sectors such as apparel, textiles, motor vehicles and processed food products facing higher tariffs.

Losses could be as high as $750 million in the motor vehicles sector alone, UNCTAD estimates.

These outcomes pale in comparison to the export losses that the UK will experience in the EU market in the case of a so-called “no-deal” Brexit.

UNCTAD’s research indicates that would result in UK losses of at least $16 billion, representing an approximate 7 percent loss of overall UK exports to the EU.