Strategy Analysis International

Should You (still) Care About Brexit?

03-04-2016

“As island dwellers, it is hard for the British not to think in an insular way. Brexit (the prospect of Britain departing from the European Union) is a major talking point around dinner tables in Britain, but this is not true on the continent. About half of Europeans would prefer Britain to stay in the Union, over a quarter simply do not care. Smaller countries also tend to care less about Brexit. Even in Germany and France, two giants of the European project, the share of people who are not concerned about Britain’s future is roughly as high as those who feel passionately about it.”

And so the question: Why should you care?

Well, the traditional way for US companies to approach Europe has been to start first in the country that speaks your language. This has been the UK or Ireland. Ireland has the Euro and would not dream of leaving the EU (except maybe to spite the Brits if they ever they opt back in.) Scotland is squirming to leave the UK, and will make another attempt when or before the Brits opt out. The UK will now have to re-negotiate its own trade agreements that the EU has already negotiated in its name (with much greater clout). The UK will also have to negotiate a trade agreement with the EU. Switzerland and Norway, both outside the EU, contribute to its budget in return for trade access, but have no say in formulating its trade policies. So if you do the traditional thing, and start to access Europe or your overseas empire from the UK, you might be in for hurdles you don’t expect.
So, yes, you should care, or, like the HSBC, Europe’s largest bank in London, implement (discreetly for now) a contingency plan.

That’s where we come in. SAI has have over 30 years of experience helping US companies succeed in Europe.

If you would like to learn more about how we can assist you or just want to leave a message or inquiry, chick here to contact us now.



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