The Impact of Brexit for the Trade Relations between the UK and USA

Abstract

Brexit is non-binding political declaration which explains the nature of future relations between the UK and EU. The process of leaving the EU formally began on March 29, 2017, when May triggered Article 50 of the Lisbon Treaty. The USA is the main overseas investment and the main single country export market for UK business. The UK and USA had its own bilateral trade relations worked through the EU. The day after the Brexit vote, currency markets were in turmoil and the values of Euro and Pound were decreased. Those increased the value of the dollar. That strength is not good for U.S. stock markets. It makes American shares more expensive for foreign investors. Many US firms have opened subsidiaries elsewhere in Europe to protect against a hard Brexit or no deal. This research mainly focuses on the determination of the impact of Britain’s European flee be affected by British and American trading. Through that the future relationship between Brexit and trading, and the practical applications for developing trading between the UK and the USA are going to be discussed. Journals, textbooks, newspaper articles have been utilized to gather important data as a secondary source of data to pursue this research. The methodology of this study is qualitative and quantitative methods are also used to emphasize objective measurements and the statistical, mathematical, or numerical analysis of data collected. US companies across a broad variety of industries have produced large investment in the United Kingdom. In fact, American companies have viewed Britain as a strategic gateway to other countries in the European Union. Brexit will jeopardize many strategically aligned companies, affiliate income and inventory prices with the United Kingdom. Furthermore, the research is conducted to determine the impact of the affect the economy if the US refuses to trade with British. These studies are concluded to identify the impact of Brexit towards the economic status of UK and USA.