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14 November 2016

Mandelson: Hard Brexit will lead to £1.2 billion bombshell for British businesses


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New research for the Open Britain campaign shows the cost of the UK losing access to the European Union’s Free Trade Agreements (FTAs) with over 50 countries across the world. Importers in the UK would face an additional £1.2 billion in the costs of importing goods from these countries.


In addition, the competitiveness of UK exporters would be undermined, as importers from the same 50-plus countries with whom the EU has FTAs would face a tariff bill of almost £700 million when buying UK goods. Turkey and South Africa would be among the countries worst affected. The £500 million difference between the impact on imports and exports shows that UK businesses have more to lose than those in the countries we will have to renegotiate new deals with. 

The UK would have to renegotiate these deals with each of these countries individually after we leave the EU. It would be far more difficult to negotiate bilateral agreements of comparable scope if we pursue a hard Brexit. The UK would be better placed to negotiate to keep its current access to EU FTAs if it chose to remain a member of the Single Market and the Customs Union after leaving. 

Commenting for the Open Britain campaign, Lord Mandelson, the former EU Trade Commissioner, said:

“A hard Brexit could lead to a £1.2 billion bombshell for British businesses.

“The billion-pound bill for losing access to trade deals with over fifty countries would be footed by businesses and passed on to consumers with higher prices in the shops. [...]

The impact of Brexit on UK imports from outside the EU

The impact of Brexit on UK exports to destinations outside the EU



© Open Britain


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