Claims that Brexit Would be Terrible for Trade are Misleading

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The UK exporters could be moderately unaffected if the UK was to withdraw from the EU.

Britain’s exporters would fall under little harm from an exit from the European Union according to a new report.brexit

Capital Economics said that a Brexit wouldn’t be a disaster for the trade as some opponents of the exit have said.

There have been claims that millions of jobs rely on the membership in the EU, but this is actually misleading. They are assuming that all of the trade between the UK and the EU would disappear if the UK left.

Moody’s and Standard & Poor’s have warned that the UKs economy could possibly suffer if the Brexit was to happen, but Capital Economics says that the trade with Europe could end up being relatively unaffected.

They also noted that under the Lisbon Treaty, a country that has opted to leave the EU will still have two years to negotiate a withdrawal agreement before the EU treaties stop applying to the country.

They also said that with the global move towards reducing trade hurdles and the lesser importance of manufacturing would lessen the risk for UK exporters.

Exporters though could face higher costs, but these do not act as a barrier to trade, but rather an inconvenience.

At the moment the EU now accounts for about half of the UKs goods exports, which is down since the 2000s. As the UK is a member of the EU they are not able to negotiate its own deals with non-EU states, but if it were to leave then they would regain that freedom.

The UK could once again be a member of the European Free Trade Association like that of Iceland and Switzerland.

These European countries that are outside the EU are allowed to create their own trade deals and the EFTA states said that they would welcome the UK back.

Also if the trade did suffer with Europe, these losses could be balanced with the opportunities created with non-EU countries.

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