BRITAIN must leave the European Union without a deal as anything from “plainly uncooperative” Brussels will be “thoroughly inferior” a leading macroeconomist said.
The Brexit negotiations with European Union leaders have “turned out to be a roller-coaster ride” which is not worth the risk, according to the Economists for Free Trade association led by macroeconomist Professor Patrick Minford.
The report said: “This involves ending the government’s current obsession with agreeing an EU trade deal – at any cost – and embracing trading with the non-EU world under World Trade Organisation Rules, as we already do with some 60 percent of our world trade, for example the US, Japan, Australia, and most of the rest of the world.”
According to Professor Minford, the UK will only get a better deal if the EU changes its attitude.
Professor Minford argued the WTO option would provide the British Gross Domestic Product with a four percent gain.
The factors he considered for his analysis are the costs of customs, the cost of trading within the EU, the gain from new free trade agreements with the world and the costs of changing trade standards, which represent the legislation enforce to protect consumers in a country.
On top of this gain, Professor Minford also said an exit from the EU without any agreement would provide the UK with a further seven percent GDP gain within the next 15 years “when all elements of Brexit are put into the mix”, including a clamp down on immigration and a series of free trade agreements with the rest of the world.
He added: “A sober economic analysis shows that the option based on WTO rules not only brings us substantial gains from free trade, as well as control of our laws and borders, but it also implies the very opposite of chaos.
“And most importantly of all, it can be implemented without any assistance from a plainly uncooperative EU.”
Roberto Azevedo, director general of the WTO, supported the idea of a no-deal Brexit.
“There will be an impact, but I suppose it is perfectly manageable.”
To read the Express’s report in full, click here.