EXPLAINED: The potential impact of Brexit without a trade deal

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South Africa Headlines News

Britain and the European Union sought on Sunday to strike an elusive trade deal, with failure likely to end with trade in chaos, markets tumbling and a huge economic price to pay.

STERLING

Britain would default to World Trade Organization terms in its trade with the 27-state bloc, making it in effect as distant to its biggest trading partner as Australia. The EU is Britain's biggest trading partner, accounting for47% of its trade in 2019. It had a trade deficit of 79 billion pounds with the EU, a surplus of 18 billion in services outweighed by a deficit of 97 billion pounds in goods.

The shock would be felt unevenly across continental Europe,with those likely to be hit worst including Ireland, the Netherlands, Belgium, France, Luxembourg, Malta and Poland. Brexit without a trade deal could allow Northern Ireland to become a back door into the EU's single market, thus raising the spectre of a hard border on the island of Ireland for the first time since a 1998 peace deal.

 

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