No deal is not only bad for the United Kingdom but also for the European Union as well. No deal will make them both suffer economically. Populist-Italy is already into a recession and a no deal will not make it any better.
A no deal means less Italian Prosecco for the U.K. Britons bought a record 164 million bottles of champagne and sparkling wine last year, but the effects of Brexit has hit Prosecco long time ago. For the first time in over a decade, exports of Prosecco to the U.K are slowing.
Prosecco is made from Glera grapes grown in the area surrounding the village of Prosecco near Trieste in north-east Italy. In 2015, Prosecco overtook champagne as Britain`s favorite sparkling wine, but it seems like the popularity has peaked for a while.
According to UHY Hacker Young, the Prosecco sales increased by only 5% compared with the previous year which is the smallest annual sales growth since 2011. A 5% decrease in sales isn`t bad, but it is bad compared to several yars of double-digit growth, and this can only be the beginning if we se a no deal between the U.K and the E.U.
Britons consumed 112,7 million bottles of DOC Prosecco in 2016 and exports to the U.K, U.S and Germany accounted for 75% of the sales.
If Boris Johnson want a bottle of Prosecco on Valentines day, he have a great chance to buy it at a normal price, but it can be one of the last chances because a no-deal Brexit will stifle trade and limit choice.
A deal win-win deal will help them both. Italy will sell more bottles of Prosecco and Britons will continue to enjoy a wide range of quality sparkling wines on Christmas eve later on this year. A deal without tariffs.
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