BARCELOS, Portugal (AP) — Sales to Britain make up about half of the Pedrosa & Rodrigues garment factory's annual revenue of about 14 million euros ($16 million). With the U.K.'s impending departure from the European Union, "the worst-case scenario is losing 7 million euros" a year, says Ana Pedrosa Rodrigues, the family-run Portuguese company's client relations manager. "It would be extremely worrying."
Companies like this one fear they could be part of the collateral damage from Britain's withdrawal from the EU's single market, which guarantees no tariffs on trade and free movement for goods, workers and money.
As Brexit-inspired economic adjustments ripple across the bloc, small countries like Portugal could feel a lot of economic pain, although the extent of the disruption remains unclear because the terms of Britain's divorce deal with the EU remain unresolved.
