No-Deal Brexit to Cost U.K. Luxury Sector 6.8 Billion Pounds Per Year

A no-deal Brexit could cost Britain’s luxury goods industry 6.8 billion pounds ($8.9 billion) per year, according to data commissioned by Walpole from the consultancy Frontier Economics.

The report, released 24 hours before British members of Parliament cast the first in a series of make-or-break Brexit votes, said no-deal Brexit could reduce the amount of U.K. luxury exports to the European Union by 6 billion pounds, while exports to Asia-Pacific would decline by 800 million pounds.

This means that up to 20 percent of the U.K.’s luxury exports would be at risk because of “detrimental changes to market access,” including delays at borders, higher tariffs and additional compliance costs following the country’s exit from the single market. Non-tariff measures, such as health and safety or environmental regulations, would also take a bite out of export gains. Walpole, the sector body for Britain’s luxury industry, released the data ahead of a vote on Theresa May’s latest Brexit deal, which is set to take place on the evening of March 12.

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