Experts have predicted that the highly anticipated post-Brexit trade deal between the United States and the United Kingdom would boost the British economy by only 0.16% over 15 years. Prime Minister Boris Johnson had campaigned on the deal’s ability to compensate for post-Brexit trade losses with the European Union, however, the benefits of the trade deal are not expected to cover such losses. While the US is the UK’s second-largest trading partner, it will prove difficult to provide an alternative to the EU which accounted for 45% of all British exports and 53% of imports.
Negotiations between the US and the UK are set to begin later this month. Depending on exact terms of the deal, the UK’s gross domestic product (GDP) is expected to increase between 0.07% and 0.16%. The same model that was used to make these predictions also estimated that the UK’s GDP would fall by 7.6% over 15 years if the government failed to reach an agreement with the EU.
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