What will reset deal mean for UK economic growth?
Summary
The UK government has secured a new deal with the EU to improve their trading relationship, aiming to boost the economy. The deal includes reducing paperwork for food exports, potentially benefiting UK exports to the EU. However, the predicted economic boost is much smaller than the losses some experts associate with Brexit.Key Facts
- The UK and EU have made a new trade deal to improve their economic relationship.
- The deal reduces some trade barriers, like paperwork and checks, for agricultural products.
- Previously, extra paperwork caused UK food exports to the EU to drop by about one-third since 2019.
- The agreement could be worth around £8.9 billion to the UK by 2040, roughly 0.3% of GDP.
- Some food prices may have risen due to previous trade barriers, but changes depend on suppliers passing on savings.
- The UK extended a fisheries agreement by 12 years, which affects a small part of its economy.
- Economists predict Brexit has reduced UK GDP by an estimated 4%, costing the economy about £100 billion annually.
- Future benefits may come from youth mobility and recognizing professional qualifications, but these won't fully offset Brexit-related losses.
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