No-Deal Brexit Lands a Bigger Blow to UK Economy than Covid-19

The report said the most immediate and visible consequences of a "no-deal" will be seen at borders, with risks of queues and shortages of certain foods and medicines.

The reintroduction of customs duties and paperwork for importers and exporters will increase costs for both businesses and consumers.

Britain and the European Union have set an October 15 deadline to strike a deal, but weeks of talks remain deadlocked over key areas such as competition and fisheries.

Read also: UK Seals the Deal with Japan in Post-Brexit Trade Deal

Prime Minister Boris Johnson has said he will walk away from negotiations if there is no agreement, despite having promised that it would be quick and easy to get one.

Britain would then deal with the EU — its biggest trading partner — under World Trade Organization rules from January 1, 2020.

"While the prime minister said no deal is a 'good outcome', our report shows that it may lead to significant disruption and will have a significant economic impact," said Anand Menon, Director of the UK in a Changing Europe.

"As significant will be the political fallout of no-deal, particularly with the UK and EU, but also inside the UK, particularly Northern Ireland, and internationally too." 

(Writer & Editor: JBO-PHZ/AR/WAI, Agence France-Presse) 

Source: http://u.afp.com/3Rsd