Monday 8 April 2019

The Single Market is vital to Scottish companies

Since June 2016 most Irish people have been thinking what happens if Scotland remains in the EU by leaving the UK. Like Scotland, the majority in Northern Ireland voted to remain in the EU. Not surprisingly, Northern Ireland may become an independent state of the EU in its own right, considering that its territory is larger than some existing EU members states, such as Luxembourg and Malta. 
With regards to Scotland, three out of four its international trading markets are in the EU (Germany, France, Netherlands, etc.). On June 23, 2016, Scotland voted "Remain" by 62% to 38%, while 55.8 in Northern Ireland voted to stay in the E.U. and 44.2 % "Leave". People who live in those peripheral countries of the UK disagree with the exit from the custom union, as traders fear Brexit will see Scotland and Northern Ireland lose access to the EU Single Market.
With food and drink exports reaching £ 5 billion, Scotland's products are in demand in the world over. As a matter of fact, Scotland is the third largest producer of farmed salmon in the world. Scotch whisky accounts for almost 80% of Scotland's food and beverages export market, not to mention Scottish sales of oil, gas and refined products to the rest of the world.
Scotland voted to stay in the UK in 2014, but against Brexit in 2016, and will probably be driven out of the EU against it will. Of course, most Scottish people think the European association of countries trading with each other without restrictions or tariffs is vital to Scottish economy. For this reason, Scotland should hold another referendum to leave the UK.
As already mentioned by many experts, as soon as the UK leave the EU, British economy will slow sharply, as the country will pay tariffs on goods and services it will export into the EU. For this reason, since June 2016 British business leaders have been afraid the UK will not be an attractive place to do business. According to figures, almost half of UK's exports are to the EU, therefore it's easy to know the impact of Brexit on the UK's economy. For instance, British car makers, who are the UK's biggest exporters, have warned that the UK's departure from the EU Single Market poses the "biggest threat in a generation".
European policy makers have been underlining that whoever decides to leave the European association of countries, which are trading with each other without restrictions or tariffs, cannot expect all obligations to be omitted while keeping its privileges. According to the domino theory, other Members States would follow the UK with the aim to leave the EU. Not surprisingly, things in the EU may get a little out of hand, considering that many anti-europeanism leaders face important elections in the course of this year. Meanwhile, after the House of Commons had rejected the withdrawal agreement, the European Council proposed a one-year flexible extension, with the aim to allow the UK to exit as soon as possible.