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Old 25.10.2016, 22:47
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Re: The Brexit referendum thread: potential consequences for GB, EU and the Brits in

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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.
UK has been in the EU for a very long time and many supply chains have been built taking full advantage of the Customs free borders.

An example of the interconnections of the current supply chain is a fuel injector for diesel lorries manufactured by the US component maker Delphi.

This part uses steel from Europe which is machined in the UK before going to Germany for special heat treatment.

The injector is then assembled at Delphi’s UK plant in Stoneham, before being sold on to truckmakers based in Sweden, France or Germany.
Multiple tariffs and Customs delays would make this process very costly.

Possibly this special steel is not made in the UK and the final customers are anyway not in the UK so this part might be a candidate for conversion to full mainland Europe processing?
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