Bri­tain’s trade op­tions af­ter Brexit

Pakistan Observer - - ECONOMY WATCH -

Cur­rency Sell­ing Buy­ing LON­DON—Bri­tain’s sta­tus as a trade power has be­come one of the most con­tentious is­sues in the Euro­pean Union mem­ber­ship ref­er­en­dum on June 23. The un­cer­tain out­look for ex­porters, and the im­pli­ca­tions for in­vest­ment in Bri­tain, are driv­ing much of the ner­vous­ness in fi­nan­cial mar­kets where the pound has weak­ened sharply. “In” cam­paign­ers, led by Prime Min­is­ter David Cameron, warn that Bri­tain’s econ­omy would suf­fer if it lost its un­fet­tered ac­cess to the EU’s sin­gle mar­ket of over 500 mil­lion con­sumers.

Bri­tain would lack ne­go­ti­at­ing muscle for any new deal, they say, be- cause 44 per­cent of its ex­ports go to the EU com­pared with 8 per­cent of the EU’s ex­ports that go to Bri­tain. On its own, Bri­tain would also strug­gle to se­cure deals with non-EU coun­tries, the “In” camp says.

By con­trast, “Out” cam­paign­ers say the EU would do a deal with Bri­tain be­cause of its im­por­tance as an ex­port mar­ket. It also says Bri­tain would strike deals with other na­tions, such as the United States and China, more quickly than the EU with its 28 mem­ber coun­tries and their dif­fer­ent pri­or­i­ties. Be­low is a sum­mary of the var­i­ous trade op­tions for Bri­tain in the event of a so­called Brexit.—Agen­cies

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