After reviewing various projections about the UK’s future economy without a potential deal with the European Union, economist Harry Flame said in a report that it would not make much difference for the country to follow the WTO trade rules instead. However, there are other potential negative effects on the British.
Professor emeritus economist Harry Flame goes In the Sieps Report By 15 different predictions about how the UK will be affected economically by leaving the European Union and instead following the WTO’s international trade rules towards the European Union. The significance of the WTO rules depends on whether or not the European Union and the United Kingdom have successfully agreed on other rules and tariffs this year.
Flam’s review shows that the negative impacts of the WTO track are small and very uncertain. The difference may be in some or a few percent of BNP Flam writes: In other words, Brexit does not mean a disaster for the British economy.
Statistical implications according to Brexit studies conducted in the United Kingdom BNP It shows a 15-year growth loss between 0.2 and 10.7 percent with WTO rules. The big differences in expectations are due to the fact that the studies partly cover different things.
Among the negative effects that Harry Flame is addressing is the rise in customs and management costs for British companies from zero to 15 billion pounds a year. This is nearly double the UK annual net fee charged by the EU member states and continues: if London’s financial sector loses the right to operate freely with the EU, its position as a global financial center could be threatened as well.
The soap report concludes with a comment that it would be desirable to finally be able to clearly and unequivocally define the costs of Brexit. Most likely, however, the costs remain unclear and the UK will not be able to provide a model for other EU countries that might consider withdrawing in the future.