European Business

Answer

The 4^th round of monthly talks about Brexit issues ended in Sep 2017 with little or insignificant progress. The 5^th round of talks is yet to start in Oct 2017. The aim is to get a win – win deal for each negotiating party (Hunt & Wheeler 2017). It is feared that Brexit may influence further disintegration of European Union (EU) in the future (Rosamond 2016). On 26 May 2017, Theresa May wrote on her public Facebook page that it is a great challenge to negotiate for the best Brexit deal (May 2017). In her public speech, she noted that best Brexit deal is central to UK’s prosperity and economic security (May 2017). The best Brexit deal is that which allows free movement of the human resource and goods to and from EU/UK to foster trade and economic cooperation.

Brexit negotiation for the best deal follows a referendum held on 23 June 2016 in which the UK voted to leave the EU (51.9% in support versus 48.1% in the opposing side) (Hunt & Wheeler 2017). UK exit was done in accordance to Article 50 of the EU which provides guidelines for exiting the union (Hunt & Wheeler 2017). While speaking to the Scottish Fabians, Keir Starmer – the Brexit secretary pointed out that a good Brexit is based on shared institutions. Starmer argued that it would be difficult to have trade relations with EU without shared institutions such as the European Court of Justice. A supranational court would allow for a smooth running of a single market (Rampen 2017).

After Brexit the UK economy grew by 1.8% in 2016 but the growth has slowed in 2017. Inflation stands at 2.6% since June 2016. One of the key issues under discussion is the rights of EU and UK citizens after Brexit (Hunt & Wheeler 2017). It would be best if the fundamental intention of the idea of a ‘single market’ were maintained (Johnson & Turner 2016). Additionally, proper demarcation of people’s rights needs to support free movement of human resource and goods to and from UK/EU. Free movement of goods and people is good for trade and economic cooperation.

            Baxter (2017) expressed confidence on Theresa May that she is capable of delivering the best deal capable of stimulating investments and creating jobs needed by citizens in the UK. May settled on Norway as a model for Brexit negotiation. But the Whitehall seems to lack a clear plan for Brexit (Wintour 2016). Free movement of money, services, goods, and people is a primary objective of the EU that has been achieved (Hunt & Wheeler 2017). UK’s exit from the EU should not lead to isolation, thus the best Brexit deal that would be good for  business is that in which open access policy is maintained (Ayris 2017). On the other hand, UK’s sense of globalization and technological innovation is dependent on her nature of co-operation with the EU (Taylor-Goody 2017). The best Brexit deal should foster free movement of people and goods between EU and the UK. A healthy trading and economic co-operation between the UK and EU is necessary for realization of a sustainable growth.

Conclusively, the UK should still allow for the free movement of goods and people to and from EU. This will facilitate continuous position of the UK to remain as part of a single market. Trade cooperation and shared market will continue to support UK’s economic growth and prosperity. The UK companies are in need of a large market place provided by EU. Besides, such a deal will allow UK companies to increase their level of creativity and innovation, especially when best experts in different fields are made up of a diverse workforce outsourced from the EU and the world as a whole.