Firms have ‘little to fear’ from EU import tariffs after Brexit

BRITISH business has ‘little to fear’ if the other 27 EU nations refuse to agree a free trade deal, a report says today.

Brussels hardliners want EU leaders to punish the UK for Brexit by refusing to ratify any trade agreement. As a result, some exporters would face tariffs on goods sold in the EU.

But the report by the Civitas think-tank says the Government could effectively compensate any losers by using the proceeds from tariffs paid by EU firms importing to the UK, even though direct compensation is illegal under World Trade Organisation rules.

Civitas claims that after Brexit, British exporters would face tariffs of more than £5billion a year without a free trade deal. But the Government would earn £12.9billion from tariffs on imports from the EU.

The study suggests ministers should spend £2.9billion to back research and development and £3.8billion on regional aid, along with a scheme to offer grants to firms affected.