North East exporters face £250 million in extra costs each year after Brexit - People's Vote

North East exporters face £250 million in extra costs each year after Brexit

New analysis of trade statistics by HMRC and the World Trade Organisation, released today by the People’s Vote campaign, shows that businesses in the North East would face a £250 million increase per year in exporting costs after Brexit due to new barriers and tariffs imposed on goods sold to European markets.

The heaviest-hit industries are machinery and transport manufacturers, who would face over £100 million per year in extra costs, and chemicals producers, who would be hit by a bombshell of over £70 million per year.

The sectors facing the highest average tariffs are beverages, with an average of up to 18%, and food and live animals industry, which face an average of 8.9% in new tariffs.

This analysis follows a YouGov poll of the North East which shows a huge shift to remain along with growing numbers backing a People’s Vote on the final Brexit deal.

Both a ‘no deal’ scenario and the Government’s proposed Chequers agreement would see costs for exporters skyrocket as the EU has made clear it does not accept either as a solution for tariff free trade.

Exporting businesses, which contribute over £12 billion to the North East’s GDP each year, provide the backbone for job creation and growth in the region. At no point during the referendum campaign were North East voters told by Brexiters that a vote to leave would mean a hit to local businesses selling into EU markets.

The news comes as the People’s Vote campaign continues its Summer of Action in Newcastle this Saturday 25 August.

Anna Turley, MP for Redcar and People’s Vote supporter said:

“These figures show the disastrous impact Brexit would have on businesses in the North East, who would have to bear these costs and deal with the additional trade barriers to Europe. The implications of this for jobs and growth in our region are potentially severe.

“It is irresponsible for any Government to harm businesses in this way, and people across the North East will rightly be asking why they weren’t told of these consequences during the referendum.

“As more and more facts about Brexit come to light every day, it’s no wonder people across the country are now calling for a People’s Vote on the final deal with the EU.”

/ENDS

 

Notes to editors

The extra cost to exporting businesses was calculated using export figures for the North East, published by HMRC, for each industry. The value of exports to the EU was calculated by the share of EU exports as a percentage of total exports, also published by HMRC.

Average WTO tariffs for the industries were then applied to the export figures.

The full results of the analysis are as follows. The top lines of this release are based on 2017 figures, based on 59% of North East exports going to other EU member states.

 

Industry

Value of exports to the EU in 2017 (£ million)

Average of tariffs under WTO Most-Favoured Nation rules

Additional cost to exporters after Brexit

0 Food and Live Animals

134.43

8.90%

11.96

1 Beverages and Tobacco

9.43

18.06%

1.70

2 Crude Materials

126.17

0.80%

1.00

3 Mineral Fuels

40.68

0.85%

0.34

4 Animal and Vegetable Oils

2.94

5.14%

0.15

5 Chemicals

1646.82

4.49%

73.94

6 Manufactured Goods

780.66

3.85%

30.05

7 Machinery and Transport

4373.83

2.39%

104.53

8 Miscellaneous Manufactures

489.97

5.70%

27.92

9 Other commodities

9.43

0%

 

TOTAL

7615

 

251.63

(HM Revenue and Customs, accessed 22 August 2018, link / World Trade Organization, accessed 22 August 2018, link / United Nations Statistics Division, accessed 22 August 2018, link)

Hundreds of people are expected to take part in a rally organised by People’s Vote in The Assembly Rooms, Fenkle Street, Newcastle, this Saturday, August 25th, to demand a People’s Vote on the final Brexit deal.