Brexit-Related Tariffs Could Cause Recession, Warns Musgrave's CEO
Chris Martin, CEO, Musgrave has said that the introduction of Brexit-related tariffs could cause the UK & Ireland to fall into recession, reported The Grocer.
During a session at IGD’s Convenience Retail Summit in London yesterday Martin warned the UK’s decision to exit the EU would be “equally tough in the UK and Ireland”.
Reportedly, he also said the devaluation of sterling had already had a major impact on the areas near the border with Northern Ireland in the past few months, but “where the real change comes is with tariffs”.
“Ultimately I think it’s incumbent, unless we want to see consumer recession both in the UK and Ireland, that we work as retailers, and also suppliers, to make sure those tariffs are worked away through the system,” he added.
It also outlined that EU members can sell goods freely anywhere else in Europe without having to pay additional taxes.
But if the UK was unable to negotiate a free trade deal following Brexit, a 40% World Trade Organization tariff on the cost of goods would be the “worst-case scenario”, warned Martin.
© 2017 - Checkout Magazine by Donna Ahern