As companies consider their strategies for life in a post-Brexit world, Baker McKenzie reveals the projected impact of hard Brexit in four sectors that are key to UK manufacturing and to our clients: the automotive, consumer, healthcare and technology industries.
For the purposes of the research, we focused on a hard Brexit in order to draw the strongest possible contrast between continued membership of the Single Market and a Brexit in which we leave the EU customs union and bilateral tariffs revert to WTO 'Most Favoured Nation' levels.
- Across the four sectors we modelled, hard Brexit would lead to a fall of almost £17 billion per annum in annual EU export revenues
- Increased costs of exporting to the EU, in the form of both tariff and non-tariff barriers, would total £3.8 billion across these four industries
- The proportionate fall in UK global exports would be four times that of EU exports in key manufacturing sectors
- New trade deals with third markets could offer the best opportunities for UK exports – particularly the United States
- UK manufacturing exports to target third markets would need to increase by 60% to offset 'hard Brexit' EU export losses
Businesses need to ask the right questions to identify potential risks and opportunities for a post-Brexit world. This is particularly key if involved in the import and export of goods and services into and from the EU, and the movement of people between the UK and the EU.
Speaking to our experts
Our dedicated team of Brexit experts is able to help you navigate your future. To discuss Brexit and the implications for your company please get in touch with your usual Baker McKenzie contact or, alternatively, Ross Denton or Samantha Mobley in our London office.
Navigating Changing Times: Brexit and the Future of your EU Workforce