There are lessons in the UK’s exit from the European Union which finally came to pass following the referendum and many changes are afoot at the top to move forward with planning and extracting the UK from the EU in some shape or form.
Some prefer a very close link with the EU, similar to that of Norway and others would simply like to be treated just like the USA, Australia and other nations where trade is concerned.
Those looking at the UK from the outside should not underestimate the UK’s resolve and will to move quickly when it serves its purpose. (Remember the Falklands.)
One of the biggest drivers for the way the UK voted was the free movement of labour from any EU Country which has swamped the UK. Being a small island, the UK has its own problems with housing, school places and health care; but the sudden influx of so many eligible migrants simply crushed the systems and almost brought things to a halt, financially and physically with the inability to build the infrastructure quickly enough to cope with the influx.
Since the vote, a certain amount of Panic has hit the Stock Markets and Currency Exchange Rates; with the British Pound falling against a number of major currencies and boy has the National and International Press had a field day with all the Scaremongering. The currency has taken a bit of a hit and stocks have been having a bumpy ride with downturns and upturns.
Yes, the UK has voted to leave the EU, but it will take up to or beyond two years to extract itself and in the meantime it is still a full member of the Union with little or nothing changing.
In order to start that process the UK must write informing the Commission that it wants to leave under article 50 and it is only then that the process can begin.
Frankly, the currency exchange rates were fuelled by traders punting and nothing else. Whenever you get uncertainty brokers begin to move cash and stocks taking advantage of even small falls in value to take a quick buck and to bed and breakfast stocks. You only have to look at the UK’s economy compared to others in the EU.
The British economy is in fairly good shape and even though it’s debt margins have risen under the former Chancellor of the Exchequer due mainly to the austerity program followed by him. However, these policies are about to change and finances should be reversed with new Infrastructure Projects in the coming year which are being formulated by the new Prime Minister Theresa May and her new cabinet.
So, the UK will be well placed to weather any storms that may come its way and the Bank of England has put plans in place to intervene where necessary.
There are challenges, but challenges would have been there if the UK had remained as part of the EU. As for British Businesses, the multi-nationals can look after themselves as they always do and that is what we are seeing now. Once the dust settles and wider horizons open up, trade will improve for UK businesses.
There is much posturing, chest beating and veiled threats coming from certain officials the EU mainly to exact some anger, but also to frighten other existing member states from enacting the same process that Britain is going through.
Many member states are disgruntled at the failure of the EU to change. But, although its a union, you can be assured that the member states still look after their own interests as best they can and they are aware that they collectively sell more to the UK than the UK sells to them.
Germany alone sells a significant amount to the UK, so its vehicle manufacturers and their supply chain will not want to damage their own trading situations and that goes for others.
But what does Brexit mean for small and medium businesses in the UK and indeed Globally?
In respect of smaller companies, much depends on the amount of trade a company does with the EU, but the remaining member states will want to look after their own interests in trading with the UK. So, there should be little change apart from some smallish tariffs, as we already have our goods and services compliant with all the EU’s regulations and so on.
In fact, a recent Civil Service review on being in or out of the EU has shown that once the process unfolds and things settle there will be little difference in our trading with the EU and the rest of the world than there would have been if we had stayed in. This information was given out in an interview on the BBC’s Newsnight programme recently and you can understand why it was not released for general consumption prior to or during the referendum and is still only spoken of quietly in certain informed quarters.
The Critical Thing for Business Owners to Remember Is:
Make sure that You and Your Business STANDS OUT FROM THE CROWD so that the rest of the world can see them among all the noise on the Internet. Small/Medium business owners should now be looking to mitigate any unforeseen downturns in their own markets and doing everything they can to raise
- Their Brand’s Awareness and Focus,
- Key Personnel Profiles, Service Profiles and Endorsements
- Their Wider Market Status and Influence
In any downturn it is sound business practice to have more control in the markets you already serve and to try to find new markets, perhaps by drilling down in to the different existing sector segments that may now offer opportunities hitherto unnoticed.
On the Up Side – The chances are that there might not be much of a downturn (if any at all) – remember no one knows what will happen – this has never been done before.
But of course bankers and stock brokers don’t like to bet on “Perhaps Scenarios”
Britain traded with the rest of the world including Europe before it joined them as a member state, and it will trade with the rest of the world and the EU again. Already, none EU countries are making representations for discussions over trade agreements including Australia, China and India. I would also expect many of the Commonwealth Members to step up and want to negotiate with the UK as things move forward.