Read About UK Creating New Business Trade In Latin America
United Kingdom voted to be separated from the European Union on June 23 2016, a binding referendum called Brexit. Unfortunately, it has brought negative effects in the economy of Britain and its relations with other countries in terms of business trading. In spite of this issue, United Kingdom still desires to excel in the international businesses and is open for new business trade with other countries.
All about Brexit
United Kingdom, since 1973 has been a member of European Union – which sets up free business trading amongst its member countries for the importation or exportation of their local products. In the past years, the relationship between UK and European Union has been smooth, proper and easy-going until such time when the union are constantly making decisions that is not in favor for the United Kingdom. This is the main reason why UK decided to be separated from the European Union. A referendum addressing the concern has been made and votes were tallied, garnering 51.9 percent of British people wanting to leave the said union permanently.
The Cost of the Separation
European union is indeed a huge organization that can bring remarkable impact in the economy of a country. Due to the fact that UK decided to cut ties with them, they cannot benefit anymore to the free trade market that the union offers and because of this, UK has to think of an alternative plan and look for another trade agreement to facilitate with another country afar from Europe. To maintain their international supremacy in terms of economics and business, UK has to build new business relationships with other countries to keep up with the global trading market and to rise the growth in trade in the future.
The United Kingdom Department for international Trade declared that they are going to create new business trade in Latin America for them to build more harmonious business affiliations across the globe. Latin America has been incredibly growing and its developing economy is indeed notable that is why United Kingdom wants to create good and strong business trade in Latin America to be part of its fast growing economy.
Trade in Latin America
United Kingdom’s new business trade in Latin America mainly concentrates on the free trade system between Colombia, Peru and Ecuador for they have the largest economic growth and development in the past few years and is still developing even today. One of the goals of United Kingdom in launching new business trade in Latin America is to strengthen their bilateral trade and invest into business relationships with the abovementioned countries but most specifically, they are conscious that Brexit might weaken their new affiliation but they are expecting that this new business trade in Latin America would bring them good and contribute to the development and enrichment of their economy instead of the opposite.
How Will the Business Trade in Latin America Work?
The United Kingdom International Trade Secretary declared that the United Kingdom Export Finance will double their financial support for trade with Colombia up to 4.5 billion pounds during his visit on Colombia in August 2017 where he met with the minister. It was also said that the UK Export Finance will double the financial support between United Kingdom and Peru to 4 billion pounds.
In fact, as per the record in 2015, the prior total trades and service between the two affiliated countries goes up to 12.4 billion pounds, this only shows how good the business and trade market relationships the two countries have and it is expected to escalate more because of the new business trade in Latin America of the United Kingdom, mainly that of the countries Colombia, Peru and Ecuador
Latin America exceptionally have its economy and business opportunities growing which will be the main contributing factor towards their economic growth that will attract global investors.