British lawmakers have issued a stark warning over Brexit's potential impact on the country's aerospace industry.
The sector accounts for 7 percent of the U.K.'s manufacturing output and is dominated by Boeing, Airbus and Rolls-Royce. Bombardier, GKN and Leonardo Helicopters are also major employers.
A House of Commons report released Monday by the Business, Energy and Industrial Strategy Committee has claimed that divergence from European Union (EU) rules and no free trade deal would be "utterly self-defeating" for the aerospace industry.
ADS Group, a trade organization representing the U.K.'s aerospace and defense industry, submitted that additional checks at the EU border could cost the industry £1.5 billion ($2.1 billion) each year.
And the Royal Aeronautical Society, which also provided evidence, claimed suppliers in European aerospace supply chains compete in large part on speed as well as cost.
"The penalties for not getting there on time are very severe, and therefore these non-tariff barriers can very quickly drive up costs," the report said.