 has said that leaving the EU without an ongoing trade deal would "not be a disaster".){kind=link}
Report from the Institute for Economic Affairs (IEA) has said that leaving the EU without an ongoing trade deal would “not be a disaster”.
The leading thinktank said on Friday that Britain can remove all import barriers, which could then lead to lower prices for consumers, increased productivity and higher wages.
The IEA’s research director, Jamie Whyte said: “Many people believe that disaster will befall us if we do not forge a deal with the EU,”
“In fact, we could unilaterally eliminate all import tariffs, which would give us most of the benefits of trade, and export to the EU under the umbrella of the WTO rules.
“Then we can seek free-trade deals with all major trading partners, including the EU.”
This comes despite constant warnings from ministers that leaving the EU without an agreement would negatively affect both British companies and consumers. This was emphasized in a report from Institute for Government, who said that a failure to strike a deal would put the UK in the worst place possible for trade.
The thinktank’s position is similar to international trade secretary, Liam Fox. Fox has argued that the UK can walk away if no reasonable negotiation can be reached with Brussels. He has advocated deals with other countries including the US.
According to the IEA, Britain would benefit from the removal of high tariffs, such as the tariffs on oranges from South Africa.
The removal of tariffs could lead to loss of jobs in Briton in sectors such as farming, which are protected by the EU. The IEA has said that new roles will be created to counter the losses.
“There are many myths being perpetuated about trade policy – and more specifically about the UK’s relationship with the EU – that must be debunked. We could unilaterally eliminate all import tariffs, which would give us most of the benefits of trade, and export to the EU under the umbrella of the WTO rules,” said Whyte.