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Warning on cost to region of tariffs from ‘no deal’ Brexit

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The East of England economy is facing heavy costs in the event of a ‘no deal’ Brexit due to the collapse of international trade deals and from tariffs, the CBI has warned. It says East of England exports to countries with EU free trade agreements are worth more than £4 billion and account for more than 10 per cent of the region’s exports every year.

Firms in the region exports goods worth £570m to Turkey and £350m to Canada each year through the agreements with the machinery/transport and chemicals/pharmaceuticals sectors among the most exposed. Immediate tariffs could cost the region’s economy millions in lost orders says the CBI.

Richard Tunnicliffe, CBI East of England regional director, said: “If the UK leaves the EU without a deal, overnight businesses in the East of England could cease to enjoy the benefits of tariff-free trade with, and easy access to, crucial markets for products and services, from Canada to South Korea. Many firms are unaware it is not just their relationships with EU customers at risk from a no deal Brexit, but relationships across the globe.”