According to a new study, the developing countries will take the most part of loses from Brexit.
The UK’s fallout from the European Union may also pose a serious threat to developing countries that depend on trade with Britain.
Among least developed countries Cambodia will be hurt most as more than 7.7% of of the country’s exports currently go to the UK. Increased tariffs and other barriers could see Cambodia’s real GDP fall by 1.08%.
These result was determined on the basis of simulations conducted by the German Development Institute.
According to the authors of the report, Brexit could also sink a further 1.7 million people worldwide into extreme poverty.
“Regardless of the final outcome of the negotiations, Brexit implies fundamental changes in the British trade regime concerning third countries,” the study authors wrote. “The UK must act to mitigate the adverse effects on economically vulnerable countries.”
The United Kingdom takes part in the Everything but Arms (EBA) treaty as well as the European Generalized Scheme of Preferences (GSP) as a EU member, both of which remove or decrease duties on exports to the EU for developing countries.
Malawi also sends 3.4% of its exports to the UK. It would be the second most affected from the least developed countries. Malawi’s GDP wil drop by 0.14%.
However, the reality for the least developed countries could be far worse than the report predicts.