G20: Will Brexit Damage Britain's Economy?

• 09.06.2016, 13:47
•  Europe,  World

ricochet.com

After the vote on Brexit one of the main topics especially for world economies have become the future of Britain and its position in the world economy. The topic of Brexit was also one of the main discussed issues during the G20 summit. Different countries came up with warning of the consequences of Brexit, leaving Britain upset.

The US President Barack Obama warned Britain that the US will not prioritize a trade deal with the UK, when the UK leaves the European Union.

"It is absolutely true that I believed pre-Brexit vote and continue to believe post-Brexit vote that the world benefited enormously from the United Kingdom’s participation in the EU. We are going to make sure that the consequences of the decision don’t unravel those very strong relations," Obama said during a joint news conference with May, The Irish Times reports.

In its turn, Japan warned that Brexit could result in the country's firms moving their European head offices out of Britain.The report of the Foreign Ministry of Japan says that "Japanese businesses with their European headquarters in the UK may decide to transfer their head-office function to Continental Europe if EU laws cease to be applicable in the UK after its withdrawal," BBC reports.

It was only Austria that declared that it would be among the first countries the UK would seek a trade agreement with. Australia could be the first country to sign a free trade agreement with the UK once it leaves the EU, BBC writes.

"Australia is determined to provide Britain with all the support and assistance that we can. We are such great friends, such strong allies. (There) couldn't be two countries with closer bonds," Australian Prime Minister Malcolm Turnbull said, The Telegraph reports.

These talks about trade agreement between Austria and Britain have angered the European Commission Chief Jean-Claude Juncker. He has declared that he opposes trade negotiations between Britain and other economies, while Britain is still an EU member.

"I don’t like the idea that member states of the EU, including those who are still a member state of the European Union, are negotiating free trade agreements," Juncker said.

Of course, these are expected disputes and it is difficult to predict whether they will continue in this manner or further developments to expect. One thing is clear - after Brexit is formally completed, Britain will have new rules of games - both in terms of politics and economy. Whether those rules will be more effective for the development of the country will depend on what it would receive during Brexit negotiations and how it will use it in the future.