Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Sunday, 19 January 07:59 (GMT -05:00)

Business And Politics News

UK-EU Relations After Brexit

As you probably know, the United Kingdom is going to quit the European Union. At the same time, the UK definitely wants to retain its economic ties with the EU after the so-called Brexit, Masterforex-V Academy experts say. When it comes to economic relations with the European Union, Great Britain can follow the example of Norway, Switzerland, Turkey, or the WTO.




According to Deutsche Welle, backing the Brexit procedure is going to be the key challenge for Teresa May, who is the UK’s new Prime Minister. Another major challenge for here is going to be the attempt to retain as many of those ties with Brussels as possible, including, economic, political, and financial ones. As we have mentioned, in order to overcome the challenge, the United Kingdom may draw on the experience of Norway, Switzerland, Turkey, or focus on the WTO. Apparently, any of the mentioned models of economic and trade relations has its own specifics.
Norwegian Way
At this point, Norway, Lichtenstein, and Iceland have the closest ties with the European Union. Along with Switzerland, those 3 countries are members of the European Free Trade Association. On top of that, those 3 countries are members of the European Economic Area, ruled by 4 key freedoms, which are of fundamental importance to the EU. Those freedoms imply the free flow of capital, labor force, goods, and services.




On top of that, Norway participates in a range of the EU’s political formats, which collectively makes it the closest partner of the European Union. Sometimes, Norway is called a semi-EU member. The thing is that Norway also adopted 75% of EU laws. Still, the people of Norway voted against joining the EU during the past 2 referendums dedicated to that. The thing is that they tried to protect their domestic fishing and agricultural industries. The Norwegian model could provide the UK with the fullest access to the EU markets possible in this situation after the Brexit. Still, at this point, this model seems inappropriate for London from the political standpoint. The thing is that Great Britain is quitting the EU exactly because they don’t want to obey the EU laws. On top of that, Norway advocates the freedom of movement for EU citizens. The UK, on the contrary wants to quit the EU to stop the endless inflow of migrants. The financial benefits from following this model is questionable as well.
Swiss Way
Switzerland has less tight economic and financial ties with the EU. They do it within the scope of a less considerable area of free trade. To a great extent, here we can see free flows of labor force and goods, while there are some limitations in the agricultural sector. The specifics of economic relations between Switzerland and the EU are all about multiple agreements. All in all, there are some 120 agreements signed by the parties to date.
Still, some experts say that this bulky system is inefficient. That’s why the experts, including those working for Masterforex-V Academy, seriously doubt that Brussels is going to offer London this very model of economic cooperation.
Turkish Way
There is a customs union between Turkey and the EU, which has been there for 20 years. This union has been backing a relatively free flow of most goods. On top of that, trading steel, coal, and agricultural products is subject to preferential duties, which are mentioned in several standalone agreements.

If to evaluate the satiation for London’s side, the benefit of a customs union is the absence of a free flow of labor force as well as regular payments, which is something the UK really likes. Still, London also sees a big drawback in this kind of relations. Those privileges don’t cover the service sector and don’t back a free flow of capital. At the same time, we should keep in mind that even if London does chose this model, Brussels may well disagree to accept it since this is the format the EU rarely choose. To be more specific, apart from Turkey, this one is applied to economic relations with San Marino and Andorra. Turkey was offered this format amid the talks on Turkey’s EU membership.
Cooperating on WTO Terms


Having said that, more and more experts believe that the United Kingdom and the European Union will have to come up with a whole new model of economic cooperation. If the parties do fail to come up with it, they can always retrace to the WTO rules. Within the scope of such a format, British businesses will have the same rights as, for instance, New Zealand companies. The same holds true for customs duties. Still, there is a problem even in this case. The thing is that by quitting the EU, Great Britain will have to quit the WTO as well since it once entered the WTO automatically as an EU member. Anyway, everything can be settled if both the parties really want to cooperate.


You are free to discuss this article here:   forum for traders and investors


Add to blog
Got a question? – Ask it here »

Fed Cuts Key Interest Rate For The First Time In 10 Years

The U.S. Federal Reserve is reported to have cut the key interest rate, which is something really outstanding since the Fed has done it for the first time since 2009.

Publication date: 11 August 03:05 AM

New Prime Minister Names Brexit Date

It seem that the new Prime Minister of the United Kingdom is really determined about everything related to the Brexit. The process is expected to start in later 2019. Boris Johnson's standpoint on the matter didn't come as a surprise to the international expert community, Market Leader reports. The thing is, he has been well-known for being an advocate ad big supporter of quitting the European Union in general, and doing so without a major agreement in particular, which is also known as the hard Brexit scenario. 

Publication date: 07 August 06:54 AM

Johnson Launches Hard Brexit Ad Campaign

Boris Johnson, who has recently been appointed new UK Prime Minister, is on his way to launch an ad campaign to promote the idea of quitting the EU the hard way, which is also known as the hard Brexit. For those of you who don't know, the hard Brexit scenario implies quitting the European Union without signing a major agreement.

Publication date: 31 July 11:43 AM

U.S-China Trade War Is Sponsored By Consumers

According to the IMF, consumers and producers are the biggest losers in the trade war between the United States and China. Despite growing duties, American companies are not in a hurry to move their production back to the USA.

Publication date: 12 July 01:19 AM

US-China Trade Conflict May Trigger Another Global Financial Crisis

Beijing and Washington are one step away from escalating their trade conflict. The confrontation may harm the entire global economy. Some experts belive that the trade war may also trigger another global financial crisis. At this point, the parties seem to have come to a standstill, which is why the chances of the conflict escalating into a move severe trade war are still growing.

Publication date: 18 June 10:18 AM

WTO Lowers Global Trade Growth Forecast

 WTO experts are reported to have revised their forecast for the pace of global trade growth. The renewed forecast names figures below the previous ones - 2,6% against 3,7%. It's also interesting to note that the previous forecast for 2018 failed to match the actual figures.

Publication date: 19 May 02:58 AM

How to Protect Investment Capital in 2019?

Existing political and economic risks are pushing international investors into thinking about the security of their investment capital. Chasing big profits becomes secondary to this kind of security.

Publication date: 31 March 11:26 AM

EU Comes Up With Workaround to US Sanctions

The representatives of Germany, France, and the UK have registered a company to let it trade with Iran despite the US sanctions. The company still needs to be approved by 28 EU members.

Publication date: 31 March 02:33 AM

Beijing and Washington are getting ready for the final talks

Publication date: 17 February 08:58 AM

US-China Trade War Reaches Next Level

Washington and Beijing have announced a new round of talks. International experts say that the trade war is indeed going to a whole new level.
Publication date: 08 January 10:17 AM