Nikkei Asian Review: Brexit Moment of Truth

Britain will give formal notice March 29 on exiting the European Union. “Britain has suddenly become a place of uncertainty for investors – from Asia and the rest of the world,” explains Humphrey Hawksley for Nikkei Asian Review. “Already, thousands of Asian companies that are integral to the British economy are slowing or reversing expansion plans.” Hawksley points that the UK’s share of the global economy is 3 percent, a little more than fast-growing emerging economies India and Brazil. China’s is 15 percent while the US and the EU each top 20 percent. Trade partners search for opportunities, bargains and concessions ranging from loosened visa restrictions to apologies for colonial behavior. Trade agreements take years to negotiate, and Hawksley concludes, “None of this is encouraging and explains why global powers such as China, Japan, India, the U.S. and the EU unanimously spoke out against Brexit last year, bewildered as to why the U.K. would ever want to do such a thing.” Asia Pacific nations may learn from the Britain’s and Europe’s mistakes by nurturing and valuing trade partnerships close to home rather than assuming the distant grass is greener, as the old saying suggests. – YaleGlobal