Exports following UK’s Brexit decision are definitely going to be affected, but it is still too early to have clear-cut extrapolations of the exact effects. With no EU member state having exited from the EU before, this situation leaves the UK in unchartered waters as there is no example to learn from. One thing, however, stands to be as sure as daylight. This is that the exportation process to various EU countries from Britain will definitely change.
The UK was allowed to have two years of negotiations regarding their intended exit from the EU. This allowance is founded on The Lisbon’s Treaty Article 50, which has an outline concerning the exiting from the European Union by its member states. This article will shed some light on some of the expected outcomes of British export into EU after Brexit.
Export Rates Will Be Made More Stringent
Truth be told, it is likely that there will be few options for the exit strategies that the UK and the EU will end up agreeing upon. The conflict that is expected in these negotiations could be due to UK seeking normal British export into EU after Brexit.
The reason behind the likelihood of conflict when the UK seeks to move for such conditions is quite simple. The EU will be highly likely to edge towards making the UK a good example of the consequences of exiting from it to its member countries. The manner in which this will be accomplished is mainly via giving them harsh trading terms and conditions such as when exporting into the EU. This explains the cause of conflict that could arise when the UK seeks leniency in trading terms from the EU. If this union was to agree to less strict terms, it could encourage its skeptical members to abandon their membership in the UK. Therefore, in light of all this, the exporting rates and conditions into the EU are bound to be less bearable for UK exporters.
Exporters Will Be Forced To Lower the Prices of Their Products
In case the UK is still allowed to trade with other members of the EU after the Brexit as currently happens, they will have to comply with the tough regulations of the union. As it has been alluded to earlier on, one of the barriers that will crop up in the exportation process of UK following the Brexit will be propagated by EU’s desire to protect its membership’s benefits.
One of the regulations that the UK has to follow is the loss of free market with the European Union members. UK’s exports could, therefore, wind up with deals that do not include having a gateway to the EU’s common market. This interprets to the UK exporters having to make their prices lower. The reason for this is so that they can appeal to various EU buyers that have to incur the costs of taxes for the goods that they import from Britain.
The exit of the UK from the European Union is a move that came with many consequences strung along to it. Some of the propelling factors that led to the making of such a decision were indeed lucrative, but there are some sectors of UK`s economy that took a hit. Even though it has not come to pass yet, the trading industry was one of the sectors that were affected.
In the present times, there is normalcy in the exporting and general trading patterns of the UK in the EU. However, with time, there will be a different season in the world of exportations and this article has explained some of the major outcomes of British export into EU after Brexit.
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