Sunday, October 2, 2016

U.K.’s May Plans to Trigger Article 50 by End of March

Move will start formal Brexit process after Britons voted to leave the European Union in June






http://www.wsj.com/articles/u-k-s-may-plans-to-trigger-article-50-by-end-of-march-1475401597
Updated Oct. 2, 2016 10:57 a.m. ET


The UK’s Prime Minister, Theresa May, said that she will begin the process of Britain’s exit from the European Union next March. Britain has been a part of the EU trade bloc for 43 years. They now will have the power to implement their own immigration laws. This exiting process is under Article 50 and once it is invoked, the UK has two years to negotiate its new relationship with the EU. With elections coming up in France and Germany, this is likely to be a complicated process. Mrs. May will begin by laying out the details for repealing the 1972 European Communities Act, which will make them a sovereign state free from EU law. There is still concern from politicians and businesses alike that Mrs. May does not have a plan for extrication. She was only in office for 2 months when the vote to exit the EU occurred. The European Commission will not engage in informal talks regarding Britain’s exit until Article 50 has been invoked. But, Mrs. May wants to be clear on the exit strategy and negotiations before invoking article 50 due to the 2 year deadline. If she proposes defense, security and trade relationships that are unacceptable to the EU, she will have little time to propose alternatives. This article applies to Global Marketing in the sense that when doing business in foreign countries, the political environment must be fully vetted and precautions must be put into place to hedge against political instability. This is an example that even developed nations can be subject to political instability.

2 comments:

  1. Great example Arbie! That is definitely a state of instability. It is such a chess match with international politics that you can be criticized for the policy you make public, as well as the policy they assume you have...definitely complicates international business.

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  2. By; Victor Veldekens
    WSJ – response

    The UK is in a complex situation. Clearly as a country within the European context the UK is dependent upon Europe as an import-export partner. Mrs. Mays difficult task is to navigate openness to markets while preserving national sovereignty. Although immigration policies are important and sovereignty strikes a core to all nationalist perhaps there are bigger issue at stake?

    Maybe ……
    1) The requirements of free trade leads to a lack of national autonomy. Which threatens freedom and civil liberties.
    2) The global pressures to sacrifice national interest and home grown completive advantages leads to a fear of long term economic un-competitiveness. The UK is a service driven economy.
    3) Best interest scenario for the UK may be in setting itself outside the power struggles of the various trade blocks and market itself as a friend of all and an island free of deep commitments. A global Switzerland.

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