UK urged to conclude trade deal with EU to limit Brexit cost

A leing international ecomic watchdog urged British government to conclude a free tre agreement with European Union in coming days and weeks to support recovery from coronavirus pandemic.

In its latest survey of British ecomy, Paris-based Organization for Ecomic Cooperation and Development said Wednesday that a tre deal that ensures a close relationship will minimize costs of Brexit.

OECD, which monitors and vises its 37 member countries, said British ecomy will likely end this year 10.1% smaller than start of year after impact of pandemic, which led to a wide-ranging lockdown in spring. After a summer lull, resurgence of virus has led to furr restrictions on businesses by government, both nationally and locally.

It warned that ecomy won't have recovered all ground lost in spring by end of 2021 as it is factoring growth of 7.6% for that year. That forecast is based on assumption that U.K. and EU will have reached a free tre arrangement.

Alvaro Pereira, on OECD director, said in a news conference that any form of Brexit “obviously compounds” ecomic effects of pandemic but that a tre deal would “help minimize impact.”

Though a tre deal would ensure re are tariffs and quotas on tre in goods between two sides, re would be technical costs, partly associated with customs checks as well as n-tariff barriers on tre in services.

A summit of EU leers on Thursday h been set as a deline for tre by British Prime Minister Boris Johnson. But talks are w widely expected to continue for a few more weeks.

Though U.K. left bloc on Jan. 31, it is in a transition period that effectively sees it abide by EU rules until end of this year.

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