David Cameron to quit after UK votes to leave EU
David Cameron to quit after UK votes to leave EU
On 23rd June 2016, the UK vote to leave the European Union. The Prime Minister David Cameron has decided to step down. As his attempt to salvage the vote, he had requested the country to vote to remain in the Union. However, the vote to leave won by 52% against 48%. He had warned that leaving would have economic repercussions (Marketplace, 2016). I agree with his assessment that the vote will have economic repercussions not only for the UK but also for other nations.
America has several trade agreements with the European Union. The US is Britain’s largest single export market. The American economy has abundant natural resources, high productivity and well developed infrastructure making it very productive. Part of this productivity comes from exports to different parts of the world including Britain. The problem is that with Britain out of the EU, the U.S. and Britain will have to renegotiate the trade terms with the U.K. the European Union creates a simplified system where goods, people and services can move freely. The EU negotiates agreements with member countries mostly through the free trade agreements. With British out of the EU, all these benefits will not be available and trade will be affected.
A country like America trades with many other countries but any compromise with a country like British might be felt in some sectors of the economy. Those imports that facilitate the production of other goods and services from Britain will also be affected though not forever. Other external effects will still flow over to America and affect the economy however small they may be.
Reference
British Chambers of Commerce,. (2016). United States of America – Export Britain. Export Britain. Retrieved 24 June 2016, from http://exportbritain.org.uk/market-snapshots/united-states-of-america.html
Marketplace. (2016, June 23). David Cameron to quit after UK votes to leave EU. Retrieved June 24, 2016, from http://www.marketplace.org/2016/06/23/world/bbc-forecasts-uk-vote-leave-eu
Do you need an Original High Quality Academic Custom Essay?
