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Brexit news: Leaving EU is chance to make money, says Yorkshire manufacturer | City & Business | Finance

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The pound’s 15 per cent drop against a host of currencies since last year’s vote to leave the European Union (EU) is a great boost for exports, in the view of Chris Rea, managing director of AESSeal – which creates seals for machines involving fluids.

And sterling’s weakness will more than outweigh any increase in trade tariffs.

Mr Rea told the Financial Times: “The pound has depreciated by more than 15 per cent against the main currencies we trade in.

“Meanwhile the World Trade Organization tariff for the goods we produce is on average 1.7 per cent.

“So tell me: how exactly is it going to hurt us?”

AESSeal specialises in exporting its niche products around the world to a range of large businesses using the machines, while keeping production in Britain.

Brexit scaremongers warn businesses could be hit if the UK doesn’t secure trade deals with the EU.

But Mr Rea is proof that British companies are embracing the exit as an opportunity.

The managing director is not worried about tariffs, customers or other red tape, with the company instead brushing aside obstacles to focus on positives.

Mr Rea said: “If I can get a part to a customer in the US overnight now through UPS, I don’t see why it should not be the same with Europe.”

He added: “The decline in sterling we’ve seen gives us a cheap currency, similar to the benefit that Germany got from swapping the D-Mark for the euro.”

AESSeal has forecast that any additional duties its customers might face because of Brexit are just 1.7 per cent, in line with World Trade Organization (WTO) tariff rules.

This is compared to EU average tariffs on non-agricultural products of 2.6 per cent.


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