UK Misses out on €500 Million Opportunity After Brexit

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UK must be feeling the heat as EU just signed an agreement with Canada which would allow them to save nearly 99% in tariffs. The agreement titled CETA, would allow the European market to conduct trade in a much more easier manner with the North American Nation.

Simply put, this deal will make the export of goods from EU to Canada much cheaper, in addition to allowing investors in the EU easier access to indulge in investments and engage in government contract bids in Canada. This deal would also provide a breakthrough for service based professionals in the EU like architects and engineers to offer their services across the board, implying a gain in their circle of operations.

The Comprehensive Economic and Trade Agreement, which will come into force in 2017, after a formal approval process is completed in EU parliament, is set to serve as a template for negotiating a similar agreement with the UK by Canada, once it exits the EU in 2019, which will leave all existing trade deals nullified. The UK would have to start devising a framework on how it will pursue charting out trade agreements and deals with individual nations and specify the terms of engagement to each one.

Although this might be a breakthrough for EU, a similar deal with the US is off the cards right now. EU initiated negotiations of a similar nature with the US called Trans-Atlantic Trade and Investment Partnership or TTIP, a proposition which would have created nearly a million jobs.

The negotiations have stalled since a petition was forwarded by nearly 3 million residents of the EU in a bid to stop the deal from happening. The deal would have benefitted every EU resident by €545 euros annually, as stated by the European Commission. The main argument presented by the lobbyists against the deal states that such an agreement would allow US corporations too much power making them able to appeal against laws which they would deem as hurtful towards their cause.

The negotiations for TTIP have been taking place in secret since 2013 when the idea was first pursued.

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Currently involved in covering happenings around the world and the latest tech developments in the industry at TheWebTribune, He is a passionate marketing grad with a penchant for writing vociferously. His interests include researching on futurisitc domains like AI and driverless cars

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