A no-deal Brexit could damage smaller economies trading with the United Kingdom.
But it could be good for South Africa.
The UK market accounts for about 3,5 percent of world trade and it’s an important trading partner for many developing countries.
South Africa might be a major winner in a no-deal Brexit scenario.
The country could gain an additional R42-billion in exports.
That’s according to new research from the United Nations Conference on Trade and Development.
‘If Britain were to leave at any point without an withdrawal agreement, it has published its tariff schedule. The tariff will remain enforced for a year. It’ll allow duty-free entry for all our fruits our wines. Where there’ll be an issue is in the auto sector, where there’s a 10% tariff,” said Trade and Industry minister, Rob Davies.
The research shows the UK and its future trading partners need to fast-track bilateral deals if they want to avoid the costs of exiting the EU without a deal.
Once Brexit has happened, it’s expected to alter the ability of non-EU countries to export to the UK market.
The study says a no-deal Brexit could significantly disrupt and harm the economies of other developing countries whose exports are highly reliant on the UK market.