Brexit To Damage Various Sectors Of UK Economy

By Reina Ilagan

Nov 29, 2016 09:21 AM EST

When the Britains voted for a Brexit earlier this year, debates sparked between opposing groups regarding the significance of leaving or remaining in the European Union. This also sent shockwaves through the global economy.

In a new report from the Center of Economics and Business Research (Cebr), it stated that Brexit trade deals could take almost 25 years of damage to various sectors of the UK economy, most significantly the wealth-creating sectors and manufacturing.

The report, commissioned by an alliance of Conservative, Labor and Liberal Democrat politicians, stated that leaving the single market would damage every economic sector including the manufacturing, energy, retail and financial services.

The Cebr report warns that since all major sectors are linked to EU, seeking a free trade agreement which prioritized some sectors over others could harm such sectors. Because of the linkages between the UK's sectors, uncertainty over trade deals could block investment.

"Every major sector of our economy is linked to the single market and could be harmed through an arrangement that prioritizes one sector over another," said Chuka Umunna, one of the MPs pushing for the continued membership of the single market.

Joining Umunna to appear in an Open Britain event are Conservative ex-minister Torry Anna Soubry and Nick Clegg from the Lib Dems.

"It is the height of irony that free-market Brexiteers often claim European regulations are the product of an overbearing European super-state, when in fact EU regulations are designed to liberalize markets," Clegg said.

"It is ironic too that arguing to leave the single market on the basis of reducing the regulatory burden we face would in fact lead to reduced trade due to an increase in regulatory trade barriers," he added.

So far, the prime minister has not yet revealed her vision for Brexit, but said in a newspaper interview that she just wanted to "get on with the deal."

The prime minister has earlier confirmed that she will trigger article 50 before the end of March 2017, leaving the EU two years later in 2019.

© 2024 VCPOST, All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics