Now the British Parliament has rejected the revised Brexit deal, all parties involved realise that doubts are here in order to remain.
The only certainty at this stage is that British politicians are just about to vote on whether they would rather leave the European Union without a bargain in any way, at 6 am Thursday, Australian Eastern Daylight time.
The entire world is watching, and the EU has demonstrated a slow yet fairly formidable capacity (and patience) to encourage Brexit that is, to de-integrate constructively and peacefully.
The future for Britain and also what’s going to be the remaining 27 member countries is uncertain. Others aren’t waiting for it to become apparent.
Multinationals Aren’t Waiting
Many businesses, in addition to small and medium-sized enterprises and suppliers, have been preparing for Brexit (many for a hard Brexit) for some time.
That’s because, as the global financial crisis demonstrated all too clearly, uncertainty leads to customers cutting back on spending, businesses streamlining, closing or partially shifting and monetary markets demanding higher risk premia to donate.
Multinationals with operations in the united kingdom are highly exposed to increasing expenses, rising backlogs and uncertainties about whether they can move goods across borders.
British firms, and those reliant on the British economy, are warehousing extensively, and are shifting the non-essential resources overseas in mainland Europe as far as possible.
Nissan has declared it will not construct its new sports utility vehicles in England, Honda has been shutting its UK operations, while Credit Suisse, Goldman Sachs, JPMorgan, Morgan Stanley, and Citigroup and HSBC have transferred ownership of European subsidiaries and/or resources from London to remaining EU countries.
Bloomberg and Panasonic are moving to Amsterdam. Airbus is likely to pull out of the United Kingdom and replace its UK suppliers. Companies like the British airline Flybmi are collapsing.
The Economist recently referred to the present phenomenon as slowbalisation. The EU is negotiating a free trade agreement with Australia.
Australia Will Negotiate With Both
Brexit Won’t allow the UK to benefit in the terms Australia negotiates with the EU. Negotiations for a separate UK-Australia arrangement are expected to start soon, but just after Britain’s exit from the EU is formalised.
In the meantime, Brexit has already redefined the global business plan of Australian firms that have traditionally obtained the EU Single Market throughout the UK, forcing them to launching choice or additional offices in southern Europe.
Can Australia maintain a stronger negotiating position with the UK than using the EU Probably. Our 27 years of economic expansion puts us in an excellent bargaining position our coming agreement with the EU and with major nations, including China and Indonesia and also the Trans-Pacific Partnership, much more so.
Since the UK struggles to clear the fog over its future, there’ll be 71 trade agreements it enjoyed as part of the EU that it will need to examine, renegotiating treaties inside a world that’s watching the UK’s deliberate disintegration of their most its most integrated and harmonised marketplace with concerned, if bemused, attention.
The planet is pondering what could have attracted the British public to vote for Brexit despite what we now know has been a crucial lack of information and a lack of any strategy for how to do it.
Britain may have heard that a good deal of from the exercise. However, by the time it has, much of the rest of the world will have moved .