If Uk choose to leave the EU it means that they require to create a deal on all tariff lines, this means covering its total trade portfolio. Nearly 100% of the Britains trade would need to be agreed When it comes to the Britains trade, they would have to negoatiate almost all of it. Trade is one of the significant things in the British economy, this is why everyone wants to make sure that they do not underestimate the challenges that possibly come. Brexit would cause the UK to lose preferential access to different markets that are covered by 36 different trade agreements with fifty eight countries negotiated by the EU. This means that the Britain would then have to impose higher tariffs on imports from the 58 countries, while they would need to levy their own surcharges on British exports. A major issue would be that British government dont have an existing corps of trade negotiators as the EU has been trading for the Britain for numerous decades. These negotiations can take years to set up. Trade agreements are a exceedingly complex thing in addition to can be tricky to negotiate; they can also be quite slow and time consuming. Still if we Britain are ready to rapidly negotiate with others, it doesn’t mean the other members will be in the position to trade with them. Brexit outcomes would reduce trade or rise the price of trade between the United kingdom and the rest of Europe, this possibly be damaging for both sides. Accountants in Doncaster say – Brexit might decrease the attractiveness of the Britain as a gateway to Europe; it could also lead to a decrease in investment from the rest of the EU.
Even though, the Britain may have difficulty to attract as much new purchase following Brexit, the United kingdom has various advantages which would be unaffected by Brexit like as language, light regulation and deep capital markets. Nevertheless, the extact influence that Brexit might have on the economy is not obvious just yet. This can be affected by a range of different decisions that are waiting to be made. The worst case scenario is if by 2030, the United kingdom fails to strike a deal deal with the rest of the EU and will not pursue a free trade agenda, the GDP would be 2.2p.c lower than if the United kingdom had stayed in the EU. The ideal case scenario is that by 2030, the Britain strikes a Free Trade Agreement with the EU, and pursues ambitious deregulation of its economy. If the UK managed to trade with the rest of the world, the British GPD could increase by 1.6%, rather than if they decided to stay as part of the EU. Brexit could cause roughly all of the Uk banking industry to lose access to the singles market and therefore major banks would have to ponder relocating to get main access to the Euro market. A bad consequence of Brexit could be serious political resistance within the UK.