A potential trade deal could boost UK exports to the EU by £25 billion annually, the United Kingdom (UK) said ahead of talks with the European Union (EU) on reorganizing post-Brexit trade relations.
According to research by financial analysis company Frontier Economics, the UK’s gross domestic product (GDP) could increase by 2.2% if trade barriers were removed. The Independent newspaper shared this data ahead of the negotiations that will start on Monday. A separate study by the National Institute for Economic and Social Research (NIESR) has pointed out that a failure to reach an agreement could lead to a 2.7% drop in the country’s exports by 2027 and a £30 billion contraction in the economy. Both studies found that a potential deal with the EU could be of far greater economic value than the UK’s trade deals with India and the US. UK Prime Minister Keir Starmer said ahead of the negotiations that such a deal would have “positive impacts in terms of jobs, living costs and border security”. Economist Jim O’Neill, on the other hand, said that a closer and more serious trade relationship between the UK and the EU is critical both in terms of closing the trade deficit and increasing investment from EU countries. O’Neill also noted that the tariffs imposed by the US are hurting the German economy, so Berlin may be open to closer trade relations with London. A possible deal would allow British financial services to be sold more easily in the EU and UK-educated professionals to be more easily accepted on the European continent.
https://www.chinadaily.com.cn/a/202505/19/WS682a85fca310a04af22c01ca.html
