According to analysis by Global Insurance Giant Euler Hermes, failure to leave the EU without an appropriate Brexit-Deal could cost the UK billions of pounds in exports alone. Statistics, which quantify the potential scope of the problem, highlight that UK Automotive export demand would fall by 6.5% in 2019, meanwhile the average UK manufacturer will see growth to slow to 3.5% next year, before contracting 1% in 2019.
In figures, this represents £3.5bn fall for the Automotive industry, meanwhile chemical exports could fall by £5.6bn, machinery exports by £5.2bn and commodity exports by £4.8bn. This is based on the UK leaving the EU without a successful trade agreement in place, and being forced to trade under World Trade Organisation terms. The report also goes on to predict the impact of the exit, if the UK manages to secure a limited Free Trade Agreement or an extensive Free Trade Agreement, where the automotive industry for example would see a much reduced loss of £1.5bn or £0.6bn respectively.
These statistics highlight the importance of securing a progressive and positive trade deal with the EU, to assure the continued success of both parties.
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