The UK’s technology, automotive, healthcare and consumer goods sectors are set to lose £17 billion a year in export revenues should a hard Brexit take the country out the single market and customs union, says a report published by Baker & McKenzie together with consultancy Oxford Economics.
The study also says that a good number of companies might be moved to leave the UK over Brexit. Over half of businesses in the automotive sector belong to non-EU parents, while non-UK owned firms account for 44% of the healthcare industry.
“We have heard a lot about how much Europe exports to the UK, for example, in the automotive sector,” says Ross Denton, partner at Baker McKenzie’s European Community, Competition & Trade Department. “That may be true in numerical terms, but when you look at this as a percentage of their trade, you can clearly see that the EU exports a lot more broadly, to a whole host of other markets, and consequently, it is far less dependent on the UK as a market than the UK is on it. This will have significant implications for upcoming negotiations.”