(Newswire.net — March 17, 2017) — While Theresa May had talked optimistically about triggering Brexit on March 14th, the Prime Minister has recently announced that her plans have now been pushed back until the week commencing the 27th of the month. This slight, but no doubt infuriating, delay for Brexit enthusiasts is the result of the need for further talks with the devolved nations of Scotland, Northern Ireland and Wales, each of which have varying concerns related to the UK’s departure from the EU and its potential impact.
Trade Talks Between the UK and the U.S: Will These Be Beneficial for Britain?
Many of the concerns surrounding Brexit are macroeconomic in their nature, with the devaluation of the pound and rising inflation all considered to be consequences of the EU referendum last June. Of course, the Conservative government have strived to negate these through the promise of independent (and lucrative) trade deals with the U.S. and Commonwealth nations, and while talks are not allowed to officially start until the UK has exited the EU it is likely that informal discussions have already taken place.
This is certainly the case with the U.S., where May and American President Donald Trump met in January and talked at length about their future relationship once the UK have completed the Brexit process. Of course, Trump’s eagerness to pursue a trade deal so quickly has raised concerns among economists, many of whom feel as though the power and influence of the U.S. will see the UK enter into a trade agreement that restricts their sovereignty while forcing them to adhere to a set of even more remote laws and regulations.
There would be benefits to striking an early deal with the U.S, however, even if an agreement is only reached in principle while the exit negotiations with the EU get underway. Initial talk suggests that an initial deal would focus on the reduction of trade tariffs and regulation, while it would also look to promote greater freedom of movement for workers from the U.S. and the UK. In the interim, it is also expected that forex traders could benefit from such talks, as there are bound to be major currency trends and price shifts that emerge as the terms of any agreement are speculated on.
Remember, experienced traders have access to real-time news rooms and analytical tools, so they have a unique opportunity to gain knowledge and capitalise on such trends before they become immediately obvious.
The Bottom Line: Why New Trade Deals Must Be Treated with Caution
Despite recent, macroeconomic fluctuations surrounding disproportionate inflation increases, the economic outlook is largely positive for Britain. Sentiment also remains positive, although much of this has to do with the prospect of new trade deals once the UK has left the EU. Potential agreements should be treated with cautious optimism, however, particularly when dealing with larger economies and savvy operators such as Donald Trump.
After all, the initial talk of trade tariffs cuts and freedom of movement is eerily similar to the deal that the UK had in place with the EU, and the government must be careful not to exchange one form of perceived servitude for another. If Brexit is to have a point and the nation’s sovereignty is to be restored, trade deals must be negotiated carefully and not be based on monetary value alone.