HOW WILL BREXIT BOOST THE AMERICAN ECONOMY?

 HOW WILL BREXIT BOOST THE AMERICAN ECONOMY?

How will Brexit boost the American economy?

With the almost daily twists and turns in the ongoing Brexit saga in the United Kingdom, the impending departure from the EU will likely have a global impact, both economically and geopolitically. This departure will create a host of extraordinary opportunities. An opportunity to deepen and broaden economic ties between the United States and the United Kingdom. Considered a key ally, how will Brexit boost the American economy?

How will Brexit boost the American economy?

Brexit: The benefits for the American economy

For decades, the EU's heavy regulatory burden has stifled the British economy and hampered trade with the United States. Indeed, diverging regulatory and legal standards significantly impede trade in various sectors. Financial services, telecommunications, automotive, and professional services have all been impacted. US agricultural products are subject to tariffs averaging 11%. But that could soon change.

If the UK regains control of its domestic trade policy when it severs ties with the EU, the United States will have the opportunity to forge a comprehensive free trade agreement with it. While the United States already enjoys one of the strongest economic partnerships in the world, with total annual trade exceeding $260 billion last year, much more remains to be done.

New technologies

As one of the world's most innovative countries, new rules can be drafted for digital trade. These rules will ensure the free flow of data across borders, remove restrictions on e-commerce, and exempt digital products from customs duties. Opening up the digital ecosystem will encourage billions of dollars in new investments. This will give Americans a boost in the race to develop future technologies such as artificial intelligence, the Internet of Things, and quantum computing.

Access to a wider market

Brexit will expand market access for thousands of products. This will provide businesses with more export opportunities and lower prices for consumers. Compliance costs and burdens for businesses in almost every sector will also be reduced. Moreover, it will encourage billions in additional cross-border investment by facilitating deeper integration of US financial services markets. For US companies operating in Britain, these changes will go a long way toward offsetting any potential economic repercussions of reduced access to EU markets.

These are just a few of the many opportunities available to the United States. The economic case is compelling. A transatlantic trade pact would create jobs, foster innovation, and stimulate economic growth. Moreover, it would generate billions of dollars in investment on both sides of the Atlantic.

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Brexit and the American economy: Towards future agreements?

Brexit could have a profound impact on the trajectory of the global economy. Given the strained relationship with China, a solid agreement between the United States and the United Kingdom could restore confidence in free trade.

The United States and the United Kingdom are economically advanced countries with free markets and strong entrepreneurial traditions. For this reason, the United States is seeking an agreement that would shift the paradigm of international trade and establish a new standard for free, fair, and reciprocal trade. This agreement could serve as a model for future bilateral agreements with other countries around the world.

However, while the potential is enormous, a deal is far from certain. Formal negotiations cannot begin until the UK leaves the EU. In the meantime, members of Congress will meet and demonstrate that the United States is open for business and ready to get to work. This would ease uncertainty on both sides of the Atlantic and lay the foundation for a strong and swift free trade agreement.

The exit from the EU is planned for early 2020. We will have to wait until then to see the beginnings of a future agreement between these two countries.