'No Deal' Brexit Could Cost UK, EU Companies 58 Billion Pounds

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Companies in Britain and the European Union face an extra 58 billion pounds in annual costs if there is a no-deal Brexit, with Britain’s vast financial sector set to be the worst-hit industry, according to a report on Monday, Reuters reported. Firms across the EU’s 27 countries other than Britain will have to pay 31 billion pounds a year in tariff and non-tariff barriers if Britain leaves the bloc without a deal, the report by Oliver Wyman management consultants and law firm Clifford Chance said. In return, British exporters to the EU will have to pay 27 billion pounds a year. “These increased costs and uncertainty threaten to reduce profitability and pose existential threats to some businesses,” the report said. Britain is due to leave the EU next year after voting in favour of ending more than four decades of political, economic and legal ties with the world’s largest trading bloc. In the absence of an agreement, trade between Britain and the other 27 EU members would default to World Trade Organization rules and tariffs, a sharp contrast to the access the UK has enjoyed as a member of the EU’s single market. Read more.