Three years ago this past summer the U.K.(United Kingdom) decided to leave the E.U.(European union). This was a big shock to most of the U.K. and E.U., after they decided to leave the Prime Minister decided to step-down because he was not in favor of Brexit. They held a vote for the new Prime Minister, which was voted to be Theresa May. Once, she took the role the process of Brexit began, also known as Article 50.
For the past three years, the U.K. have been discussing deals to leave the E.U. but whenever there is a vote always one side doesn't like the agreement and they have to create a new one. There have been two extensions but it still looks like the U.K. are getting no where with the deal. They might have to leave the E.U. with no deal and create one once they have left.
Present day, Theresa May has stepped down and the man who started the whole Brexit talk is now Prime minister, Boris Johnson. Boris really wants to get out of the E.U. as quickly as possible. They are holding a vote in December to vote in new parliament members, and depending on who gets control of parliament Brexit may or may not be completed.
Know to how America plays apart in all of this. The U.K. is one of Americas biggest trading partners. In 2018 U.S. goods and services trade with United Kingdom totaled an estimated $262.3 billion according to the Office of the U.S. Trade Representative. (Click here for article by CNBC). When the U.K. leaves the E.U. they are leaving the trade deal that the E.U. has with the U.S. which then will make it harder for the U.S. to trade with the U.K.. In the end this could cause a lot of economies in the U.S. to lose a lot of money. "The original Brexit vote caused the Dow Jones industrial average to drop by 5% or 6% in June 2016, and many U.S. economists thought Brexit could shave as much as 0.5 percentage points from the country’s GDP growth."(CNBC) With people predicting a stock market crash again, Brexit could play a part in that.
I will leave you with these questions. What do you think will happen to the economy in America once Brexit has happened? Do you think this could cause a little dip in the stock market in the U.S.? Finally, Do you think trade with the U.K. will still bring in a lot of profit.
