Businesses warned no-deal Brexit could hit international trade
The region's economy is facing a multi-million pound blow in the event of a no-deal Brexit due to the collapse of international trade deals, the CBI is warning.
With the prospect of a no-deal exit from the European Union on March 29 appearing ever more likely, the CBI is highlighting the damaging implications for UK businesses of crashing out of the trade deals EU membership provides.
The UK currently benefits from extensive trade agreements as an EU member, spanning about 70 countries.
The CBI estimates the total amount of global GDP covered by the EU and the countries it has trade agreements and partnerships with to be 37 per cent.
In the West Midlands, exports to countries with free trade agreements are worth almost £3.8 billion every year, accounting for more than 11 per cent of the region's exports. This figure equates to the annual salaries of 93,000 police officers.
Through these agreements, the West Midlands exports goods worth £610 million to both South Korea and Canada each year, with the machinery and transport sector among the most exposed.
The CBI said if the UK leaves with no-deal, these exports risk having immediate tariffs imposed overnight, potentially costing the West Midlands economy millions of pounds in lost orders.
Richard Butler, CBI West Midlands regional director, said: "If the UK leaves the EU without a deal, overnight businesses in the West Midlands 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.
"Individual businesses trading with markets outside the EU would face tariffs worth millions of pounds being slapped on them instantaneously. These trade deals span five continents and are vital for the smooth export of our goods and services.
"Exports to countries with EU free trade agreements are worth almost £3.8 billion to the West Midlands every year. The risk to these deals is an overlooked danger to our economy and yet another reason why no deal is not an option for the UK and jeopardises jobs in our communities.
"It is vital compromise is shown on both sides of the Channel and politicians work quickly to come to a deal."
