Striking a free trade deal with the US may only deliver a 0.16 per cent boost to the UK economy over the next 15 years, failing to make up the expected loss in trade from leaving the EU, the government said on Monday.
Releasing its negotiating objectives for talks with Washington, the Department for International Trade claimed a trade pact could boost the UK economy by £15.3bn “in the long run”. The regions expected to benefit most from the deal, according to the government, are Scotland, the midlands and north east England.
The DIT said that such a deal could boost trade between 0.07% and 0.16% — prompting claims from some trade experts that the net effect would be negligible compared to the loss of trade resulting from leaving the EU’s single market and customs union. A cross-Whitehall study conducted in 2018 suggested that growth would be reduced by 2 to 8 per cent in the same period.