As Brexit negotiations continue, it is not certain yet if the United Kingdom can secure a free trade deal with the European Union. It is rather clear that British financial services firms will get hit if there’s no deal. The financial sector is quite important to the British economy. But, it is not the only one.
According to BBC News, Britain’s food and drinks industry will face a disaster without a free trade with the EU. And it is the biggest manufacturing sector, which also employs 400,000 people.
The transition after Brexit is expected to last until the end of 2020. Without the trade deal, UK’s exports are going to decline after 2020, while consumers will end up paying higher prices.
The UK wants to be another Singapore, but the country isn’t located in the fast-growing Asia-Pacific region. It is near Europe (not in Europe as some Brexiters say) and 50 percent of its exports go to Europe.
By separating itself, the UK wants to do business with the whole world as it did during its heyday. But, Britain is no longer a superpower and it doesn’t control an empire.
True, seeking business abroad is always a good idea. But will other countries want to open their borders to the British businesses? The United States, for example, are becoming protectionist, while Australia is far away, and Canada is a rather small country when it comes to its population.