A Brexit Perspective from TBG CEO David Solomon Bassiouni
To the North American business community, the very concept of Brexit seems foreign and confined to the other side of the Atlantic. This thought, while seemingly comforting, is both false and dangerous.
As it stands right now, Brexit puts at risk 1.4 million UK jobs and USD 593 billion of direct investment from American companies owing to the loss of the single market. Furthermore, key sectors could lose hard-won privileges. Take the finance sector. EU membership has propelled London to pre-eminence as the global financial capital, though its primacy is now under threat as UK-based banks flirt with Frankfurt. North American finance firms have benefited from so-called “passporting rights” which allow firms in one EU country to operate in others. If this privilege is revoked, trades from a UK-based firm would be deemed illegal.
Trade across all industries is also fraught with risk. American and Canadian companies that trade with the UK will be affected by new trade agreements and currency volatility. Companies importing from the UK will benefit from the weaker pound but those exporting to the British market will be selling a more expensive and potentially less appealing product.
Brexit has created uncertainty throughout the business and political spheres on both sides of the pond. Managing this uncertainty requires a rigorous monitoring of the latest developments, translating intelligent insights into action and proactive contingency planning.
For American firms exposed to Brexit, now is the time to assess the potential challenges and to develop strategies that will mitigate those challenges while ensuring business continuity and growth.
B2Brexit’s reach spans New York, Brussels and London, which puts us in a unique position to give you market-leading insight on the risks and opportunities thrown up by the UK’s withdrawal from the EU. Contact us today and find out how we can help make your firm Brexit Ready.