Cost of everyday goods ‘could rise’ without a deal

Cost of everyday goods could rise without a deal

Cost of everyday goods ‘could rise’ without a deal

The PM has been urged to work towards achieving a deal with the EU, amid fears that the cost of everyday goods could rise by almost a third.

If a deal is not made, the UK will be forced to trade with the EU according to the rules set by the World Trade Organization.

But experts at Logistics UK have warned that the result of this would likely be an increase in the cost of moving goods due to tariffs.

In a letter to the PM via The Sunday Times, the group’s Chief Executive David Wells urged the PM to work towards a deal. He wrote:

“This will make the household shopping basket much more expensive, particularly in the early part of 2021 when we rely on imports for much of our fresh food.

“The permit quota available to UK operators will fall short by a factor of four, putting businesses at risk right across the country.

“We are urging government to keep pressing for a deal with Brussels, to protect not only our industry but the economy as a whole.”

Discussing the situation last week, Boris Johnson warned the UK to ‘get ready’ for no deal. He said:

“I have concluded we should get ready for 1 January with arrangements more like Australia’s based on simple principles of global free trade.

“So now is the time for our businesses to get ready, and for hauliers to get ready, and for travellers to get ready.

“For whatever reason it is clear from the summit that after 45 years of membership they are not willing – unless there is some fundamental change of approach – to offer this country the same terms as Canada.”

Negotiations have now resumed following a week-long standoff, and the UK has agreed to continue talks.

However, Mr Johnson added that without a “fundamental” change of direction from the EU, the two sides would fail to achieve a post-Brexit economic partnership.

Cabinet Office Minister Michael Gove has acknowledged that leaving the EU without a trade deal would cause “some turbulence”.

But Mr Wells said that the potential impact would be “more than ‘turbulence'”.

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