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'No-deal' is the least desirable option for the UK
The Government’s own economic assessment shows that a ‘no deal’ exit from the EU would be the most economically damaging outcome for the UK. The effect would be most severe in the North East and the West Midlands, and the chemical, retail, food and drink and manufacturing sectors would be hardest hit.
The Committee finds that without a deal the UK could not rely on Article XXIV of the GATT to maintain current tariff-free trade arrangements with the EU. If the UK were to leave the EU without a deal, the European Commission has said the UK will become a third country without any transitional arrangements.
The Committee also concludes that a non-cooperative ‘no deal’ cannot be the desired end state for UK-EU economic relations.
The Committee’s latest report examines the implications of leaving the EU without an Article 50 Withdrawal Agreement - a ‘no deal’ exit - on different sectors of the UK’s economy: services, automotive and manufacturing, food and farming, chemicals and pharmaceuticals and research and higher education.
Full report: The consequences of “No Deal” for UK business