Brexit aftermath: UK will need to negotiate new agreements with trading partners, says MTI

Big Ben and the Houses of Parliament are bathed in morning sunlight in central London on June 24, 2016.
Big Ben and the Houses of Parliament are bathed in morning sunlight in central London on June 24, 2016.PHOTO: AFP

SINGAPORE - The United Kingdom will need to negotiate new trade agreements with its trading partners, including Singapore, as it is no longer covered by existing trade agreements following Britain's shock vote to exit the European Union, the Ministry of Trade & Industry said.

In response to queries from The Straits Times, MTI said: "The full impact of Brexit on the UK, the EU and the global economy will be heavily dependent on the UK's subsequent trade arrangements with the EU and other markets, including Singapore.

"With Brexit, the UK is no longer covered by the existing trade agreements that the EU has and will need to negotiate new agreements with its trading partners, including Singapore. The nature and precise timing will depend on when Brexit takes effect, following the UK's deliberations with the EU," MTI said.

While the immediate aftermath of Brexit has led to substantial uncertainty and volatility in the financial markets, MTI noted that it is too early to assess the full consequences of Brexit.

"However, based on analysts' current estimates of the impact of Brexit on the UK and the Eurozone economies, MTI's assessment is that the medium- to long-term direct impact of Brexit on the Singapore economy is likely to be modest," MTI said.

"We will continue to monitor the situation and assess the economic consequences of "Brexit" on the Singapore economy and our businesses."