2 November 2017
Ilona Serwicka is Research Fellow in the Economics of Brexit at the UKTPO.
As the United Kingdom is preparing to leave the European Union, Government policy is to seek a deep and comprehensive free trade agreement with the EU. But Brexit talks have not moved onto the trade issues yet and even if the future trade relationship is taken up in December, this gives little time and offers no guarantee that an agreement will be reached and ratified before 29 March 2019, the Brexit date. The Government has recently recognised the possibility that talks might break down and started to outline a ‘no deal’ vision of the UK-EU trade.
Our analysis reveals that unemployed households, those with children, and pensioners will all fare off worse than average in the case of a ‘no deal’. A new paper, Will Brexit Raise the Cost of Living? by Stephen Clarke, Ilona Serwicka and L. Alan Winters, and published by the National Institute Economic Review, looks at the impact that imposing Most Favoured Nation (MFN) tariffs on UK imports from the EU would have on the price of goods sold in the UK and the average cost of living. (more…)
Charlotte Humma November 2nd, 2017
Posted In: UK- EU
Tags: Brexit, FTA, Living standards, MFN, No deal
17 October 2017
Lower-income households would be disproportionately affected should the UK revert to WTO tariffs
Exiting the EU without a trade deal and reverting to WTO ‘most-favoured nation’ (MFN) tariffs with the EU would lead to significant price rises across a range of goods, with low-income households facing the biggest cost pressures. This is according to a new joint-report published by the Resolution Foundation and the UK Trade Policy Observatory at the University of Sussex. (more…)
Charlotte Humma October 17th, 2017
Posted In: UK- EU
Tags: Brexit, Living standards, MFN, No deal, tariffs