MEXICO CITY, MEXICO / ACCESSWIRE / June 10, 2019 / The historic Brexit vote in 2016 now has the U.K. poised to leave the European Union after 26 years of membership, with the delayed withdrawal now tentatively set for October 31. Although Brexit’s international repercussions began immediately after the referendum vote, Pablo
Soria de Lachica warns the pending consequences will have major significance for the United States, even while some uncertainty remains as to the extent. The prominent forex broker discuss the key economic impacts that are likely to affect Britain’s closest ally once the withdrawal is complete.
One of the primary purposes and functions of the E.U. is to maintain an integrated market without any major internal trade barriers among its 28 member states, allowing capital, goods, and services, to move across member’s borders without any hindrance. This system involves streamlined regulations, with a common set of market rules each country abides by. While this aspect means that every port of entry into the E.U. is virtually the same, U.S. businesses have always preferred to use the U.K. as their main gateway to the rest of the region. This relationship has established the United Kingdom as the No. 1 destination for U.S. goods and services within the E.U., and the second-largest destination for American investment. Further bolstering this trade alliance over the years is the practice of “passporting” which allows any company granted permission to operate in one member state with the ability to do the same in all E.U. countries. With this practice in place, U.S. financial businesses can open up an office inside of London and immediately acquire access to the entire E.U. market, with any British employees now free to work in any other country within the E.U. Pablo
Soria de Lachica advises that Brexit will likely disrupt this favorable system, forcing any U.S. banks with U.K. subsidiaries to obtain a new license from regulators inside every E.U. country before they can operate in it.
Soria de Lachica emphasizes that American banking and financial interests are not the only ones facing a negative Brexit fallout – the auto and pharmaceutical industries will likely suffer as well. Automakers such as Ford have invested billions of dollars into U.K. manufacturing plants over the last several decades, receiving tariff-free access to E.U. assembly plants in return. This has previously enabled the company to base their engine production in the U.K., and function cohesively amongst a network of other E.U. plants to keep assembly costs-and consumer costs-to a lower level. Brexit’s impact would create a disruption to this system due to border delays and possible differences in emission and safety standards – potentially costing Ford anywhere
from $500 million to $1 billion. Similar issues will be seen in regards to pharmaceuticals, as the Brexit withdrawal will cause U.S.-based manufacturers to abide by an entirely new set of rules. Currently, these companies maintain offices and testing facilities in London as part of their compliance to E.U. drug standards, giving them access to the entire member market. Britian’s loss of E.U. membership will cause significant complications for these companies, forcing them to relocate, and create a separate process for selling their products in the now independent U.K. All of these developments will eventually affect U.S. consumers in several ways, ranging from difficulty traveling to and from the U.K. because of more complicated customs processes, to paying higher prices for essential services and products at home.
Pablo Soria de Lachica is a world renown broker and foreign exchange expert. An MBA graduate of Universidad Tecnológico de México, Pablo currently collaborates with Kartoshka, a world-leading innovator of technology for sales, telemarketing and customer support. Pablo Soria de Lachica also develops integrated online trading tools for investors, conducts market analysis, and oversees the day-to-day financial operations for several prominent international companies. A devoted philanthropist, his community support includes active involvement in local Boy Scouts and Delta Epsilon Sigma programs, along with contributions to organizations that include the America-Israel Cultural Foundation, and Bridges for Peace.
Pablo Soria de Lachica – Foreign Exchange Specialist: http://PabloSoriaDeLachicaNews.com
Pablo Soria de Lachica Discusses the Consequences of Brexit for UK Economy: https://www.bloomberg.com/press-releases/2019-06-05/pablo-soria-de-lachica-discusses-the-consequences-of-brexit-for-uk-economy
Pablo Soria de Lachica Explains the Ramifications of Brexit in Relation to Citizens’ Rights: https://finance.yahoo.com/news/pablo-soria-lachica-explains-ramifications-012500092.html
SOURCE: Pablo Soria de Lachica
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