At present, the British enjoy very little reputation in Europe. All involved parties agree to put an end to the Brexit negotiations quickly. But the latest UNCTAD study tells another story.
The European Union is currently searching feverishly for ways to prevent a hard Brexit. But as much as some are annoyed by the caprices of the British – a Brexit without a contract would hurt, especially London and the EU. Other large economic powerhouses such as the US or China would benefit massively, according to a study published on Tuesday by the Conference of the United Nations Trade and Development (UNCTAD).
According to this, the United Kingdom accounts for 3.5 percent of world trade, the country imported goods worth 680 billion dollars last year. More than half of the imports came from other EU countries. However, in the event of a no-deal Brexit – a UK exit from the EU without new trade agreements – the rules on market access would change abruptly.
Below is the chart released by UNCTAD, which shows the clear winners if a no-deal Brexit is passed:
European exports to the United Kingdom would then decline by $35 billion, according to the UNCTAD study. Turkey’s exports to the U.K would decline by $ 2.4 billion. South Korea, Norway, Iceland, Cambodia and Switzerland would also suffer losses if no new trade agreements were concluded.
By contrast, the relative competitiveness of the US and China would increase. China could therefore increase its exports to Great Britain by $10.2 billion, the US exports by $5.3 billion. Japan could also benefit from an increase in exports to the U.K by $4.9 billion.