How the two-year Brexit transition affects businesses in the UK
Great Britain is experiencing one of the biggest transitions in its history as it is set to leave the European Union. In what is referred to as “Brexit”, the leading businessmen in the country are worried about the fate of their companies once this isolation pushes through.
However, Prime Minister Theresa May gave an assurance to business leaders that everything’s going to be well. This is due to the two-year transition period that will happen after the Brexit. And just recently, business executives coming from Vodafone, GlaxoSmithKline, HSBC, and other British-based corporations had a meeting with the Prime Minister.
May reassures these companies that they won’t experience any negative implications as a result of the nation’s exit. May argues that there will be new trading policies to take place in 2019 that will protect their rights.
Lately, businesses are worrying about the trading negotiations’ slow process. And that they can’t help but expect for a possible trading block. But with the Prime Minister’s recent reassurance, it’s safe to say that these business chiefs don’t have to worry about anything.
According to Business Insider, the two-year transition period is inevitable. The British PM also implies that it is more of a necessity rather than an option. Another statement coming from May’s spokeswoman came out recently.
It says that the Prime Minister reiterates the goal of the government to have a smooth and orderly exit from the European Union. This shows that the welfare of businesses will be taken care of and that there’s no need to cause commotion or panic.
A good example of how this reassurance benefited UK’s business sector is when Japanese auto manufacturer, Toyota, plans to develop its next-gen Auris car in Great Britain. However, this is under the assumption that the British government would secure a transitional and smooth exit from the EU by year-end.
So what does this mean for UK’s economic landscape? Well, the answer to that is pretty clear. As long as it assures the security and sustainability of local and foreign businesses, then it would surely experience an economic boom.
Knowing how the Brexit would make the UK independent from the trade restrictions and strict policies of the EU, it’s safe to say that foreign companies and entrepreneurs will venture out into the British economy. Japanese car manufacturer Toyota is the first to do this. Probably pharmaceutical corporations will go next, or even entrepreneurs and business consultants from America. Sam Ovens is one example of those who have already tapped into the British market. And more are expected to follow.
The possibilities are endless. And with this, it’s expected that greater things are going to happen to the UK’s economy in the next few years. It now relies on how Prime Minister Theresa May will carry her administration to financial bliss, especially that a transition period is looming over the horizon.
