Hard Brexit could cost exportering companies £58bn
Exporting companies in the UK and EU face additional red-tape costs of about £58bn in the event of a hard Brexit, a report has said.
The study by consultants Oliver Wyman said country level differences are pronounced, singling out the agri-food industry in the Republic of Ireland and the car and manufacturing sector in Germany as particularly exposed.
If the UK crashes out of the EU without a deal, the annual costs overall, both tariff and non-tariff, for exporters in the remaining member states is estimated to be £31bn. That's fractionally more than for UK exporters, who will be hit with a £27bn bill.
Oliver Wyman said the study focuses only on the direct impacts of the UK's exit from the EU which are of immediate importance to companies for Brexit planning. It does not model additional impacts such as migration, pricing changes or third country free trade agreements, which are likely to increase the overall impact.
The report noted that in the EU27, the hardest hit sector will be automotive, where the direct impact will be around 2% of current gross value added.