While Euro-skeptic MPs and economists of both sides of the issue weigh it out, is UK’s exit from the EU or “Brexit” as economically catastrophic as it is predicted to be?
By: Ringo Bones
Euro-skeptic MPs often pointed out the several billion UK£ worth of British taxpayers’ money being handed over o Brussels every year only had a marginal benefit to the UK economy and has suggesting that the UK is better off – economically – leaving the European Union. But while there are several politicians in the Obama Administration suggesting that a Britain leaving the EU or “Brexit” as it is now popularly called will be catastrophic to the UK economy, is a Brexit not as economically catastrophic as it is portrayed to be?
The European Union is the UK’s biggest trading partner consisting of 670 billion US dollars worth which consists 50-percent of the UK’s annual GDP. The current trade deals that the UK has with the 27 other EU member countries also applies to the other 68 nations the UK currently has trade with. Exiting the EU would make the UK reestablish a new trade deal – 35 separate new trade deals need to be ratified with other trading nations in fact - just to keep its current trading status quo earnings. But would the UK’s imports to the United States be suddenly subjected to excessive tariffs if it chooses to leave the EU?
UK’s imports to the US will not going to be suddenly subjected to excessive tariffs because incumbent conservative politicians in Capitol Hill will keep this as low as it did when it is still in the EU. The United States is the UK’s second biggest export market which it currently has 54 billion US dollars worth of trade. Unfortunately, the talk of “Brexit” has recently affected the value of the UK£. The UK£ has lost 12-percent of its value since August 2015 due to the talk of a “Brexit”.