British trade deal ‘not essential’ to leave EU

LEAVING the European Union without a trade deal would not be a “disaster” for Britain, experts have insisted.

Professor Kevin Dowd said a deal was “desirable but not essential” and the UK could cut prices for shoppers and companies if it focused on trading as freely as possible around the world after Brexit.

The Durham University finance and economics professor wrote a report on his conclusions for the Institute of Economic Affairs think tank.

Jamie Whyte, IEA research director, said: “There are many myths being perpetuated about trade policy, and more specifically about the UK’s relationship with the EU, that must be debunked.”

Prof Dowd said Britain must make it clear to Brussels that it is ready to leave without a trade pact.

“A trade deal with the EU is desirable but is not essential and the UK should feel free to walk away from any bad deal offered by the EU.

“The UK should also prioritise striking free trade agreements with the EU, America, Canada and Australia to reduce barriers on British exports.

“Free trade would bring considerable benefits to the UK.

“These benefits include lower consumer prices, greater productivity and higher wages.”

He added that an estimated 194 countries and territories trade successfully in the EU single market without being members of it.

“It is preposterous to suggest that a Brexited Britain would be ‘cut off’ from the Single Market or even face a tariff barrier on its exports to it,” he said.