UK: Leaving the single market - AmpGFX
|Greg Gibbs, Director at Amplifying Global FX Capital, notes that the PM May made it clear, the UK understood it was leaving the EU Single Market.
Key Quotes
“As such, it places in jeopardy freedoms of trade that support the UK economy. But of course, this should be no surprise to anyone. The uncertainty this creates is not new. But May is seeking as much freedom as she can on trade with Europe. Uncertainty prevails, but May is making all the right noises as a reasonable and supportive partner for Europe, providing the opportunity for a future trade deal to not be punitive.”
“She said, “We do not seek membership of the Single Market. Instead we seek the greatest possible access to it through a new, comprehensive, bold and ambitious Free Trade Agreement.
That Agreement may take in elements of current Single Market arrangements in certain areas – on the export of cars and lorries for example, or the freedom to provide financial services across national borders – as it makes no sense to start again from scratch when Britain and the remaining Member States have adhered to the same rules for so many years.”
“Red lines and veiled warning
May argued firmly that punitive actions by Europe would be in neither the EU’s or the UK’s interest, and said, “Britain would not – indeed we could not – accept such an approach. And while I am confident that this scenario need never arise – while I am sure a positive agreement can be reached – I am equally clear that no deal for Britain is better than a bad deal for Britain.
Because we would still be able to trade with Europe. We would be free to strike trade deals across the world. And we would have the freedom to set the competitive tax rates and embrace the policies that would attract the world’s best companies and biggest investors to Britain. And – if we were excluded from accessing the Single Market – we would be free to change the basis of Britain’s economic model.”
“May mentioned all the benefits the UK provides to Europe, including the export and investment revenue European companies gain from the UK. But perhaps, more importantly, she outlined the support the UK military and intelligence services provides to the EU. The purpose was, of course, to illustrate that the UK is not without negotiating power in the coming Brexit discussions.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.