EU firms likely to pay more tariffs to export to UK post-Brexit

The Dollar Business Bureau

The EU companies, which are exporting goods into the UK, have to face a possible tariff bill 2.5 times more compared to what the British firms pay when sending their goods to EU, if no new trade bill is put in place at Brexit, said a report by a think tank.

The firms from EU would likely pay £12.9 billion per year in tariffs to Britain if it implemented the World Trade Organisation (WTO) terms after leaving the bloc, said the report by Civitas.

The sector which would be most affected is car manufacturing, which would have to pay around £3.9 billion, it added.

In return, exporters from the UK to EU would have to pay £5.2 billion per year in tariffs, under WTO terms.

Justin Protts, the author of the study, said the data showed how much the two sides would lose if they are not able to reach on a trade arrangement in the two-year process that could get started by triggering the article 50, next year.

He said that the given data highlights the significance of securing a trade deal after Brexit, not only for the Britain but also for EU, while adding, “EU exporters have much more to lose in the absence of free trade all over the continent.”

The study revealed that 22 out of the 27 remaining members of the EU would face additional tariffs while exporting to the UK as compared to what UK exporters would face while selling to them, with the major differentials for key trading partners like France and Germany.