Post-Brexit negotiations could take 10 years, warns WTO chief

The head of the World Trade Organisation (WTO) said on Tuesday a post-Brexit Britain would have to negotiate trade deals from the beginning as no country has left the EU before and talks could take years.

Roberto Azevêdo, the director general of the WTO, said relationships would need to be re-established if Britain chooses to leave the EU in the 23 June referendum. The EU has trade agreements with 58 countries.

Speaking at the World Trade Symposium in London, he said trade would continue but “on worse terms”.

He said it would cost more to trade, damaging the competitiveness of British companies, affecting 60% of goods traded by the UK including 47% with the EU and 13% with EU trading partners. Exporters would possibly have to pay up to £5.6m on duty tariffs.

Azevêdo highlighted the UK’s historic role in the WTO, that the UK was a founding member of the General Agreement on Tariffs and Trade, the precursor of the WTO in London in 1946.

Azevêdo said the UK would remain a member of the organisation but stressed that the UK “would not have defined terms in the WTO for its trade in goods and services. It only has these commitments as an EU member.

“Key aspects of the EU’s terms of trade could not simply be cut and pasted for the UK. Therefore important elements would need to be negotiated.”

He warned no precedent has been set for a country to leave the EU and negotiations could take more than 10 years.

“It could take quite some time before the UK got back to a similar position that it has today in terms of its trading relationships with other countries. Time will tell where all of this leads."

Trade and economic issues have been central to the Brexit debate and Azevêdo said that it would have been “remiss” of him if he had not spoken out and was not pressured by the government.

He maintained: "This is, of course, a sovereign decision for the British people. But it’s important that in making this decision they have the facts."