By Olivia Koravos
Brexit is a term that combines the words “Britain” and “exit,” and represents the process that is Britain leaving the European Union. According to BBC.com, a popular vote was held on June 23rd, 2016 that had registered UK voters decide whether or not the UK should stay in the EU or leave. Thirty million people voted with 51.9% of voting leave, and 48.1% voting to stay. To clarify, the European Union is a trust among 28 European countries that deals with financial and political aspects. The end of World War Two sparked the EU’s beginning and it has been a working organization ever since.
Unless there is a cancellation, which Alex Hunt and Brian Wheeler of BBC.com say would necessitate a cancellation in Article 50, or a delay by a few months, the United Kingdom is going to leave the European Union on 29 March, 2019. While this will impact a myriad of aspects of life across the pond, focusing on how it will impact America is a bit of an easier mission to tackle.
Kimberly Amadeo, U.S. Economy Expert for thebalance.com talks about exactly how the United States may be affected by this split. “The day after the Brexit vote, the Dow fell 610.32 points. Currency markets were also in turmoil. The pound fell, and both increased the value of the dollar.” While the latter might sound like a good thing, Amadeo claims it is bad for U.S. stock markets and makes American stocks costlier for overseas investors. If the pound lacks its usual strength, U.S. exports to the U.K will cost more than before. In addition, U.S. farming and manufacturing divisions will also be negatively affected, for Amadeo states that “the U.K. is America’s fourth-largest export market.”
Brexit is also set to impact how Americans travel to the United Kingdom and other European countries. Dan Reed of forbes.com reports that “negotiators from a wide number of agencies and government departments in the U.S., the U.K, and the EU must negotiate a host of new, complex agreements governing the legal, financial, safety and operational aspects of flying passengers, cargo and even the planes themselves by March 29.” If a deal is not met by then, Reed says that matters will fall neutrally, where authorization nor banning is present.
Historically, it has taken years for negotiations like this to be met. While many consequences of Brexit can be predicted, what will truly follow suit can only be known in the months to follow March 29th, 2019.
Britain's Potential Exit from the European Union
March 23, 2019
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