Post Brexit – British Global Trade Opportunities
British Global Trade Opportunities. The purpose of the European Union was not for economic reasons. Similarly, the main reason for being part of it is not entirely economic-inclined and leaving it is also not due to economic factors. Immigration is the main trigger factor causing the Brexit.
The 2009 Treaty of Lisbon made it possible for countries to freely and unilaterally depart from the EU. The manner in which the exiting country continues to collaborate with the other European Union members is handled on an individual basis.
The negotiating powers of any non-member states of the EU affect the kind of trade policy deal stroked. If all turns out positively, trade benefits from Brexit could be felt in the medium term. How would these British Global Trade Opportunities be achieved?
The very first benefit is that the UK will evade losses incurred while inside the EU. Some of these losses are to do with influence. Most of the EU’s vital projects do not involve the UK, like the Schengen area and the euro. Britain is either not associated with fifteen-year projects such as an elected president or a Eurozone Treasury.
British Global Trade Opportunities EU influence
Due to denial of this influence, UK will lack the powers it enjoys of affecting the rules set in the EU regarding the single market. The rules will be put in place for the sake of the euro, meaning UK will have to be controlled by them. By 2030, this lack of influence could have led to a loss of up to 1% of the GDP. Brexit saves this cost.
The Stay camp claims that Britain will be cut-off from accessing the EU single market. This is a trade area that has over 500 million people. Tariffs do not hinder the passage of goods. The single market boosts Britain’s trade volumes.
British Global Trade Opportunities – UK likely to flourish
But the Leave camp thinks otherwise. Their argument is that Britain has the ability of quickly making a deal with the remaining EU member states. The country is also able to trade in the long term with other world countries.
Britain on its own is able to negotiate top deals, considering that the protectionist’s issues will no longer hinder. May be the main issue of concern apart from timing is what kind of British Global Trade Opportunities agreement to go for. Having access to the single market like Iceland and Norway does is viable option. The two countries are part of the European Economic Area (EEA).
The path of not making a deal with the EU at all can as well be considered. The UK can chose to trade with Europe through the World Trade Organization framework. This is the avenue that the US and China uses to trade with the EU. It does not need complicated negotiations.
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