Abstract:The EU-U.S. trade agreement has been met with scepticism as concerns over what it means for the bloc have emerged.
As world leaders and economists across Europe digest the news of the EU-U.S. trade agreement, some experts told CNBC that while it may be bad news for the bloc, the deal could serve as an unexpected boost to the U.K.
The European Union is facing a higher 15% tariff rate on its goods imported to the U.S. compared to the 10% levy the U.K. has agreed to.
“In theory, the UK benefits,” Philip Shaw, chief economist at Investec, told CNBC.
“The new EU tariff of 15% means that UK exports to the US have become relatively cheaper, which could boost British trade with the US as American firms buy goods from Britain rather than the EU,” he explained.
U.K. goods would also be cheaper for U.S. consumers due to the lower tariff rate, meaning they may favor British products over those manufactured in the EU, Alex Altmann, partner and head of Lubbock Fine LLP's German desk, suggested in a note published shortly after the EU-U.S. deal was announced.
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