Two weeks left until the Brexit decision and little progress has been made. As discussed previously, many people are moving assets away from the United Kingdom and into a more stable and promising economy. As the probability of a no-deal Brexit increases, many professionals with a focus on economics are questioning the effects it will have.
Prime Minister Borris Johnson is willing to take the United Kingdom out of the European Union because they have one of the largest and successful economies in the world. But, I don’t think he has considered the effects this move will have on his country and the neighboring European Union members.
If the United Kingdom leaves the European Union, they will have to work under the World Trade Organization’s trade rules, which differ from their current situation. Although tariffs would change, many professionals are worried about the new custom checks that many workers aren’t and wouldn’t be prepared for. Many people are expressing concern about the affect this will have on the ports and how much impact it would have on countries that are still members of the European Union, mainly France. As of right now, people believe that only 10-20% of traders are prepared for new custom systems.
I believe that an extension for Brexit should be requested once again so the United Kingdom, France, the World Trade Organization, and the rest of the European Union can work through the logistics of trade if Brexit does occur. This would help the transition run smoother and a deal could possibly be made.
This morning, progress was made on a deal that would avoid complete destruction of the economy. The new deal helps Ireland and Northern Ireland. Although a vote in the United Kingdom Parliament has to happen, many of the leaders of European Union members, including German Chancellor Angela Merkel and French President Emmanuel Macron, have a positive outlook.