Wednesday 18 January 2017

E.U. trade is vital to Scottish companies

Since British people voted to leave the E.U., by 52% to 48%, the unity of the U.K. has been under strain. On June 23, Scotland voted "Remain" by 62 % to 38 %, while 55,8 % in Northern Ireland voted to stay in the E.U. and 44,2 % "Leave". In particular, people who live in those two peripheral countries of the U.K. disagree with the exit from the custom union, as traders fear Brexit will see Scotland and Northern Ireland lose access to the E.U.'s single market.
In reality, according to the UK Government economic service, imports from Europe to the U.K. account for only 7 % of E.U. exports, whereas the exports Britain sends from its territory to Europe account 44 % of the total exports.
British Government's plans call for U.K. to officially leave the E.U. by May 2018, and underline that the U.K. "is leaving the E.U.", not Europe. And the U.K. will not sign easily new partnerships with E.U. members, considering that, since June 23, European policy makers have been underlining that whoever decides to leave "that family" cannot expect all obligations to be omitted while keeping its privileges. On the one hand, Brexit allows the U.K. to implement a better control along its borders in terms of immigration. On the other hand, that referendum means the exit from a successfully trading area.
In this perspective, it's easy to see that Scotland and Northern Ireland will behave on the basis of their self interest. Scotland's Prime Minister, Nicola Sturgeon, plans to stay in the single market, as the European association of countries trading with each other without restrictions or tariffs  is vital to Scottish companies.





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