A NEW report has shown that the UK government’s prospective Free Trade Agreements are projected to only add between 0% and 0.16% to the UK’s Gross Domestic Product, up to fifteen years after their implementation.
The Department for International Trade estimates that the UK’s agreement with Japan will add 0.07% (£1.5 billion) to GDP each year. If signed, the UK’s agreement with Australia will add up to 0.02% (£500 million) and with the US (with whom negotiations are on hold) up to 0.16% (£3.4 billion).
By contrast, OBR figures have confirmed that Brexit will shrink the UK economy by 4% compared with remaining in the EU, double the 2% economic hit of the Covid pandemic.
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The SNP’s International Trade spokesperson, Drew Hendry MP, described these Westminster-generated statistics as proof that Scotland’s economy would fare better inside the EU.
“Scotland becoming an independent country and re-joining the EU as a full member of the Customs Union and Single Market is the best possible option for protecting livelihoods and jobs," said Mr Hendry.
“Brexit has cost Scotland's economy £3.94billion and is projected to cost every person the equivalent of £1600 in red tape and barriers to trade compared to EU membership. And now we have it confirmed that the FTAs, which Boris Johnson is raving about, will add less than 0.2% to the UK’s GDP. It is all hollow rhetoric.
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“For every £490 lost due to Brexit, all four possible trade deals combining New Zealand, Australia, the Comprehensive and the Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the USA would only make back £31," he stated.
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