BREXIT MAY POSE CONSEQUENCES FOR THE U.S.

On June 23rd, 2016, Britain voted 17 to 15 million to vacate the European Union and become their own entity and on March 29th, 2017, then UK Prime Minister,  Theresa May, submitted notice to the EU that the UK would leave on the established March 29th, 2019 deadline (which would be extended until October 31st, 2019). Since the vote, rhetoric in the United Kingdom, not only in Parliament but throughout the United Kingdom’s many countries have been heated to say the least.

When I traveled to Ireland in the summer of 2017 that was all people could talk about. I heard the term “Brexit” more than common greetings such as “good morning!” or “goodnight!”Most Irish Republic citizens fear “hard borders ” being placed on the Northern Ireland border again.

The talk surrounding Brexit even caused a sitting Prime Minister, Theresa May, to resign after she did not have enough support from her own party regarding a “divorce deal” with the EU. Exiting the EU without a deal could be dangerous as that would leave no guidelines for European countries, or the UK to follow, regarding trade with each other and how to treat travel between countries.

Now, for those of you asking “What exactly is Brexit?” and “How will it affect me as a US citizen?” allow me to elaborate: Brexit, short for British Exit, would ideally separate the UK from the European Union allowing the UK to operate under their own regulations and not under the EU’s; however, this exit would be severing customs, trade and many more agreements without a “divorce deal”. As for “How will it affect me as a US citizen?” well, directly after the vote in 2016, the Dow Jones Industrial Index fell 612 points, the Euro lost 2% of its value and the Pound lost 3% of its value but, the US dollar rose just over 1% and gold prices 6%.

However, a weaker Pound makes US exports to the UK more expensive and after all the UK is the US’s fourth-largest export market. Major US corporations that have European headquarters in the UK used the UK’s EU membership as a “gateway” to the twenty-eight EU countries. Furthermore, if the UK leaves the EU without a deal it could leave US corporations with the same regulations as they would stateside or possibly, even more, depending on the regulations the UK puts into place after their departure.

A vote for Brexit is a vote against globalization, it will most definitely cause a stunt in growth in the UK, but London’s loss may end up being New York’s win.