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Old 25.10.2016, 22:23
rainer_d rainer_d is offline
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Re: The Brexit referendum thread: potential consequences for GB, EU and the Brits in

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Oversimplistic!

There are many supply chains that wind into Europe and back, each time they cross a frontier there will be tariffs and quotas.

Plus the impact on "just in time" supply chains due to Customs delays will also add to costs.

UK car prices were already increased due to higher cost of parts for these reasons plus the weakness of the when paying for EU produced parts

At best agricultural products (when exported to the EU) would get cheaper - if the EU would let them in without tariffs...

Though, most of the raw-materials probably don't originate in the EU but in Asia/Africa anyway. But spinning-up a cottage industry of suppliers isn't something that can be done very quickly (well, I don't really know - just an educated guess. But take a look at Russia for somebody who's trying just that).
But it all relies on the assumption that the EU will let all those goods manufactured in Britain and sold at dumping prices (due to currency-effects) into the EU.
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