The sensationalist post-Brexit news headlines predicting continued losses in global markets have ceased splashing across the covers of major news publications the world over.
The landmark referendum result shock appears to have largely dissipated, while market turbulence has been relatively short-lived.
The UK’s FTSE has gone on to make a strong recovery and add value to a near one year trading high. While a short term rebound is positive for the UK it does not necessarily indicate an end to Brexit-related market volatility.
A caveat placed on the economic success of a Brexit is the UK’s ability to negotiate a series of bilateral free trades agreements (FTAs).
While securing trade networks is crucial, the need to deliver on promises of a reduced regulatory burden is coincidentally paramount to success.
There are a great many concerns regarding the tenacity of the newly sworn-in Secretary of State for International Trade, Dr Liam Fox, to secure a comprehensive FTA with Brussels. This is particularly relevant in light of Angela Merkel’s criticism of Boris Johnson’s “cherry-picking” proposal.
Regardless, it is clear the new Prime Minister’s determination to “make a success” of Brexit echoes throughout the May Ministry.
Prime Minister Turnbull has engaged with the new administration in what has been described as “constructive” discussion on a potential trade agreement. Meanwhile India has embraced the idea of an FTA, with preliminary talks beginning earlier this month.
While the future for the UK remains unclear for now, it is apparent that the economic success or failure of the Brexit rides on the May administration’s ability to negotiate trade deals.
Similarly, a failure to capitalise on their restored sovereignty and roll back the regulatory burden placed on domestic industries will only stifle the UK’s productivity and growth.
Miguel Forjaz is an intern at the Centre for Independent Studies
10 June 2017 | Canberra Times
The remarkable UK election results demonstrate yet again that it’s time to abandon unwavering belief in accepted political wisdom. One after another the shibboleths are falling. Labour’s stunning…
19 May 2017 | Ideas@TheCentre
When the regional meeting of the Mont Pelerin Society (MPS) was scheduled to be held in Seoul, few people would have predicted that it would take place at…
04 March 2017 | Canberra Times
When Trent Hunter (pictured right) walked to the podium to talk about penalty rates at a Labor press conference last week, his role was clear. He was there…
Full Name (including Title) *
Email Address *