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The Scottish economy is facing a multi-million pound blow in the event of a No Deal Brexit due to the collapse of international trade deals, CBI Scotland has warned.

The UK benefits from EU trade agreements spanning about 70 countries and CBI Scotland estimates the total amount of global GDP covered is 37%.

In Scotland, exports to countries with EU free trade agreements are worth nearly £3.9 billion every year, accounting for almost 14% of the nation’s exports.

Through these agreements, Scotland exports goods worth £790 million to Norway and £690million to South Korea each year, with the machinery/transport, beverages/tobacco and mineral fuels sectors among the most exposed.

If the UK crashes out on March 29, World Trade Organisation tariffs could be imposed on these goods overnight.

CBI Scotland director Tracy Black said: “If the UK leaves the EU without a deal, overnight businesses in Scotland could cease to enjoy the benefits of tariff-free trade with, and easy access to, crucial markets for products and services, from Canada to South Korea.

“Many firms are unaware that it’s not just their relationships with EU customers at risk from a no deal Brexit, but relationships across the globe.

“Individual businesses trading with markets outside the EU would face tariffs worth millions of pounds being slapped on them instantaneously. These trade deals span five continents and are vital for the smooth export of our goods and services.

“Exports to countries with EU free trade agreements are worth almost £3.9 billion to Scotland every year. The risk to these deals is an overlooked danger to our economy and yet another reason why no deal is not an option for the UK and jeopardises jobs in our communities.

“It is vital compromise is shown on both sides of the Channel and politicians work quickly to come to a deal.”