The Options for UK’s Brexit

Just after the one-year anniversary of the comprehensive Brexit vote, the UK is in the infant stages of the partition. Being presented with a multitude of options on how to sever ties with the EU, the UK now has to decide on how to go about the separation. Current Prime Minister, Theresa May, has given her official exit plan, but faces political and populous backlash.

In a June 23, 2017 article by the Financial Times, Chris Giles and Alex Barker outline the possible options for the UK’s separation. Barker and Giles delineate six possible options. For each option, they provide the pros and cons, wrapping up each one with their final verdict.

Giles and Barker illustrate the most plausible outcome the UK may choose.  Striking a limited tariff-free deal would provide EU manufacturers the most flexibility, while also allowing the UK to make deals with other countries. This option would potentially provide some conflict with custom checks and UK regulations.  Additionally, EU manufacturers may have to facsimile their production lines to be able to meet UK policy.

If the UK and EU cannot come to an agreement on the separation, the defaulting arrangement, or lack thereof, would void thousands of international trade deals. This annulment would no longer adhere the UK to the EU market.

Integrale Advisors are conscious of the fluctuating market trends in the UK created by Brexit. In a recent statement by Keith Knutsson, “We emphasize the importance of staying current with the always changing market. Staying present with the constant stream of information underscores our efforts in this market region.”

To read the full Financial Times article click on the link here