New U.K. Trade Deals Can’t Soften Blow From Brexit, Niesr Says
- Trade with emerging, Anglo-American nations would be "small"
- EU single market more effective at cutting non-tariff barriers
An employee on board a tug boat operated by Svitzer A/S, a unit of A.P. Moeller-Maersk A/S, pulls ropes from the Luna Maersk container ship, operated by A.P. Moeller-Maersk A/S, as it makes its way towards the Port of Felixstowe Ltd., a subsidiary of CK Hutchison Holdings Ltd., in Felixstowe, U.K., on Tuesday, Feb. 2, 2016. A vote to leave the EU could force the Bank of England to keep interest rates at a record low for an 'extended period of time' or even lower them to shore up the economy as Britain ends its 43-year membership in a 500 million-person bloc that buys almost half its exports.
Photographer: Chris Ratcliffe/BloombergNew U.K. free trade agreements with non-European Union nations won’t come close to offsetting the impact of leaving the EU, according to the National Institute of Economic and Social Research.
Based on the structure of existing deals between 42 countries, the benefits of an agreement with the U.S., Canada, Australia and New Zealand, or with Brazil, Russia, India, Indonesia, China and South Africa, would be “very small compared with the costs from leaving the EU single market,” London-based Niesr said in a report.