What Brexit means for Americans
Security interests suffer, but tourists benefit
Britain formally launched its exit from the European Union on Wednesday, a legal process that can take two or more years to conclude.
Here are four ways a British divorce from the EU affects Americans: BRITAIN ON SALE
Since Britons voted to exit the 28-nation EU in June’s historic referendum, the British pound has fallen 15% in value against the U.S. dollar. That makes vacationing in Britain more affordable for Americans. Some savvy travelers already have figured that out, as tourist spending has boomed since the Brexit vote. The cheaper pound also means better prices for British exports, from Burberry coats to Twinings tea. MORE ‘SPECIAL’ RELATIONSHIP
The U.S. and Britain have long enjoyed a special relationship because of their historical and cultural ties, but they may become even closer allies once Britain leaves the EU. British Prime Minister Theresa May and President Trump have talked about negotiating a new trade deal that bene- fits both countries. In addition, Britain, a key U.S. military partner, may be more eager to team with American forces to deal with conflict zones once it is free of the EU, which generally tilts toward a non-intervention stance in foreign affairs. THREATS TO GLOBAL PROSPERITY
Financial markets have recovered since swooning over last year’s surprise Brexit vote, but stocks and global growth prospects could head south again if the markets see too many economic downsides from the European divorce. Of major concern: Will a new trade deal favorable to all be negotiated? Will London’s banking industry — heavily dependent on Europe — sink? Will the separation end badly at the expense of global growth? LOSS OF EU LEVERAGE
As an EU member, Britain provides valuable information to American intelligence agencies about the inner workings of the alliance, a benefit that would be lost once the U.K. leaves the EU. The British are “our window into the European Union,” said retired general Wesley Clark, former NATO commander. Moreover, the EU would lose Britain’s strong voice for international security actions favored by the U.S., such as sanctions on Russia for its military intervention in neighboring Ukraine.