Bruges Group director Robert Oulds assured the possibility of a Brexit trade agreement in an interview with Jeremy Naylor on IG.com.
It was one of the many issues discussed during last Friday's broadcast. Topics ranged from the cost of other trade agreements, need for deregulation, lower taxes, and passporting rights.
The term "hard Brexit" is a misnomer, Oulds said, "clean Brexit" better describes Britain's increased options to join other trade partnerships. World Trade Organization, World Customs Organizations, U.N. Economic Commission for Europe are all viable trade facilitators.
"[The EU] signed up to other agreements that will make sure that Britain will be continuing to trade with the EU," Oulds said. "There would not be this cliff edge, this just doesn't exist."
Naylor suggested joining other agreements can incur additional costs. However, the price of these costs would be less than what the UK giving to the European Union each year, Oulds said. It's already been offset by the reduction the value of the pound, which is boosting Britain's exports.
"There isn't evidence to suggest that trade would be harmed by as much as sixty five billion in the economy if we went to WTO rules," Oulds said. "The costs would be actually minimal compared to many of the savings that have already come about."
In fact, a hard Brexit would boost the U.K. economy by a hundred and thirty five billion over five years, according to Jacob Rees Mogg MP. This potential is only realized through free trade, deregulation, and lower taxes.
"That's if we do the right things when we're outside of the European Union," Oulds said. "Only if we have a government that's actually willing to put through things like low taxation, deregulation in various sectors, and being open to trading with the rest of the world as well as hopefully the European Union."
Among the sectors that would benefit the most from Brexit is financial services. The likelihood of retaining passporting rights is strong, according to Oulds.
"We should get the passporting rights because there are similarities between how the businesses are regulated," Oulds said.
Looking ahead to March 2019, the possibility of settling on a Brexit trade agreement is very likely.
"I think political heads will be forced together and there would be an agreement," Oulds said.