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  1. ITV Report

Will Germany cut the UK a good trade deal after Brexit?

A Brexit could mean German companies have to pay tariffs on imports to the UK Credit: Reuters

Eurosceptics have long argued that Germany would cut the UK a good trade deal after a Brexit so as to protect their own business interests.

And as Theresa May begins talks to prepare for an EU exit, the facts suggest they may have a point.

Video report by ITV News economics editor Noreena Hertz.

Germany sells more goods to the UK than it buys from us - meaning that many businesses are keen to retain open trade ties after a Brexit.

The UK is Germany's third largest trade partner, second only to the US and France.

Last year it sold £48 billion more in goods and services to Britain than we bought from them.

£48 bn
The German trade surplus last year
German car manufacturer Volkswagen is a major importer to the UK Credit: PA

Engineering firms and car makers such as Volkswagen and BMW are among the biggest importers to Britain from Germany.

For example, around one fifth of all cars manufactured in Germany last year were ultimately sold to the UK.

820,000
Number of German-made cars sold to the UK last year

If Britain leaves the open market when it quits the EU, it means that those companies will potentially have to pay import tariffs on everything they sell to the UK.

It's not hard to see why many German companies are pushing for a deal that keeps tariff-free trade flowing in and out of Britain.