Prime Minister Theresa May will take her divorce deal with the EU for a second vote in Parliament on Tuesday. But while MPs debate over the controversial Irish backstop, the most recent news to come out of Brexit has shown the price of wine and high-value cars could go up. According to a report by the Wine and Spirit Association, 99 percent of wine drunk in Britain is imported – and half of this is produced in the EU.
There are concerns that if the right measures are not put in place, it could stop imports from crossing the border.
According to a study done by the Journal of Wine Economics, customers may have to pay up to 25 percent more by 2025 in the event of a hard Brexit.
If the UK exit the EU with a softer version of the withdrawal agreement, the price would only go up by 11 percent, the research shows.
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Richard Mitchell, a finance broker at Rangewell, also said the price of wine would go up, as well as the tariffs on cars.
He told Express.co.uk: “With a hard Brexit, the country would automatically adopt World Trade Organisation (WTO) terms.
“That means tariffs on goods that the UK sends to the EU.
“According to the Centre for European Reform, the tariffs on most industrial products would be 2-3 percent, and substantially higher on cars – crucial for the German economy.
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“A new Mercedes or Porsche would cost you an extra 10 percent percent.
“There would be an overall tariff of 14 percent on most agricultural products, and up to 32 percent on a bottle of French wine.
He added: “With no deal, businesses lose passporting rights, which let them work across the EU without obtaining licences in each country.
“The financial services industry, which accounts for a significant slice of the UK economy would be particularly vulnerable.”
However, a hard Brexit will not only be negative, according to Mr Mitchell.
He added: “This year, the price increases seem to have worked their way through the system, inflation has fallen, and the UK economy seems to be enjoying historically low unemployment on the back of an export boom.
“This kind of performance might even make tax cuts possible.
“A cut in the corporate tax rate, capital gains tax and income tax would make the UK look much more attractive for investment than the EU.”