COVID-19 and No-deal Brexit could cost the UK £134 billion.

An estimate made by Baker McKenzie shows that the UK may suffer a loss of £134 billion due to the impact of Covid-19 and No-deal Brexit.

An estimate made by Baker McKenzie shows that the UK may suffer a loss of £134 billion due to the impact of Covid-19 and No-deal Brexit.Britain formally left the EU at the end of January 2020, but the two sides have been negotiating over a deal that would govern $900 billion in trade. Two days ago, Prime Minister Boris Johnson broke off talks with EU and said it was time to prepare for a no-deal Brexit even though EU has offered to intensify talks and open discussions on legal texts of a draft deal.

With UK businesses facing headwinds from the combined impacts of COVID-19 and Brexit it is imperative for the government to take steps to mitigate the economic damage.

Meanwhile, Baker McKenzie, a law firm, together with Oxford Economics, released a report titled -The Future of UK Trade: Merged Realities of Brexit and COVID-19, which explores how the pandemic, linked with an eventual deal or No-Deal Brexit, will impact the bottom-line of UK businesses and the economy.

This report quantifies how a deal versus a No-Deal Brexit will affect four UK goods manufacturing sectors — automotive, consumer, healthcare, and technology as well as UK GDP over the next decade. It mentions that the combination of COVID-19 and a failure to secure a post-Brexit trade deal with the European Union could cost the UK around 134 billion pounds ($174 billion) each year, a 6% reduction in UK GDP when compared with 2019.

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