US - After the UK voted to leave the European Union on 23 June, many in the US were left wondering what the impacts would be on trade between the two countries.
Vincent Amanor-Boadu, professor of agribusiness economics and management at Kansas State University, said there are economic implications within financial and trade sectors as a result of the vote, commonly called Brexit, but that significant impact within the US agricultural sector is not likely.
Long-term economic consequences are possible but not necessarily definite as a result of Brexit, according to Dr Amanor-Boadu.
Stock prices fell after the vote, but then recovered, although the pound remains at its lowest level since 1985. Dr Amanor-Boadu said he was more worried about the details of how trade would work after Brexit, than about the effects on the global markets.
“Forget the macroeconomic issues about finance and banking, but looking at individuals – how do you now deal with your taxes?” Dr Amanor-Boadu said. “How do you deal with investments? Unfortunately, the complexity of the problem was glossed over in favour of a political gimmick and it backfired.”
Dr Amanor-Boadu added that he doesn’t think there will be radical changes in trade within the US agricultural sector because of the Brexit decision. The UK will be able to set its own rules of exporting, but since EU regulations have already been in place he said it’s not likely there will be new food safety or plant and animal health laws.
“If Britain decides to have different phytosanitary rules or different export controls, we might fill out another piece of paper if we are going to ship to Britain and Germany,” Amanor-Boadu said.
“So, we will have two papers to fill – but I don’t see that being very different than what it is right now because we are not changing the rules of international trade.”
Currencies in the US and UK will remain the same after Brexit, so there will be no change there. Dr Amanor-Boadu said more serious problems could arise if other countries also choose to leave the EU, but that it isn’t likely.
TheCattleSite News Desk