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Brexit Can Hit British Companies Particularly Hard

Brexit can hit British companies particularly hard, as many intermediates, for which they have a small selection of suppliers, import from the European Union.

Brexit Can Hit British Companies Particularly Hard
Yazar: Tom Roberts

Yayınlanma: 16 Ekim 2020 21:41

Güncellenme: 7 Kasım 2024 09:52

Brexit Can Hit British Companies Particularly Hard

Brexit can hit British companies particularly hard, as many intermediates, for which they have a small selection of suppliers, import from the European Union. This emerges from a study carried out by the Munich Ifo Institute and EconPol Europe, a network of 14 research institutes. The study looked at product groups for which there are only five or fewer suppliers. The EU obtains less than 10 percent of these products from the UK. However, Britain imports most of these products from the European Union. The Ifo Institute informed about the research in a press release, which it published on Friday. "There are few products for which the EU is currently dependent on UK suppliers. Overall, the effects of Brexit will have less of an impact on the 27-nation EU countries than on the UK," said Lisandra Flach, director of the Ifo Institute's Center for International Economics. "Our results show how important it is to reach a trade agreement that reduces uncertainty in trade relations and minimizes costs," Flachová added.
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