WTO chief warns of potential trade disruptions under no-deal Brexit

The World Trade Organization has warned the UK of possible trade disruptions under a no-deal Brexit scenario for the simple reason that there was not enough time beforehand to agree on tariffs and quotas with other WTO members.

Hardline Brexiters believe the WTO framework will cushion the exit from the European Union and allow trade to continue, albeit with additional barriers, should Britain leave the EU without a deal.

But Roberto Azevêdo, the head of the WTO, said on Friday that the EU was itself not allowed to discriminate between the UK and other WTO signatories.

In fact, other countries were likely to take advantage of the UK’s vulnerable position.

"The moment that other countries begin to sense an opportunity to increase the market share or increase the quota here or there, they’re going to go for that. There will be a lot of uncertainty here, there will be a lot of unpredictability," he told BBC Radio 4.

A UK government technical notice published on Thursday said that in the worst case scenario, "trade with the EU will be on non-preferential, World Trade Organization terms," but did not address what would happen if there was no agreement with other WTO members.

Chancellor Philip Hammond, had already warned on Friday that crashing out of the EU could blow an £80bn hole in the public finances.

For his part, Azevedo added that a 'no-deal' Brexit is "not going to be the end of the world, in the sense that trade is going to stop and that everything is going to fall down -- no, but it's not going to be a walk in the park, either."