In one of our last posts, we discussed the implications of Brexit for the economy of the UK. Britain comprises the whole of the island of Great Britain. It contains England, Wales, Scotland and the northern portion of the island of Ireland. Thus, it is sort of an international organization, such as the European Union. Now that both organizations are not tied anymore, many other organizations and countries are interested in trade deals with the UK. This is why we are talking about what we can expect from Mercosul and the United Kingdom after Brexit.
Mercosul, or Southern Common Market, is a South American trade bloc. Its full members are Argentina, Brazil, Paraguay, and Uruguay. Venezuela is a full member as well, but it got a suspension from Mercosul in 2016. Now that you know this and you are aware that the UK and the EU are not attached anymore, it is time to relate Mercosul and Britain. Considering that when a country or a set of countries is tied to a bloc, the relationship with nations outside the organization is not that tight. Once you get to be outside the bloc, you can be part of new groups of countries or even narrow the relationship with partners you already have.
Mercosul and the United Kingdom after Brexit
According to Reuters, The Brazilian government will seek to strike a trade deal between Mercosul and the United Kingdom after Brexit. The information we have is that the deal could be similar to the trade agreement signed between the South American bloc and the European Union, which the UK just left. Nowadays, China is the most important trade partner that Brazil has. However, things might become very different considering a trade deal with the UK.
Actually, if you consider the UK’s reason to leave the EU, many were expecting the interest in Britain as a new trade partner. According to politicians and citizens, the attachment to the EU limited the UK’s opportunity to grow. As we mentioned in a previous article, the marriage between both organizations was not successful anymore. Perhaps it has never been.
Now that the UK left the EU, we will be able to follow Mercosul and the United Kingdom after Brexit. Read our articles to see if the organizations will establish a new trade deal. Besides, keep up with our blog posts in order to see how strongly the deals might affect both organizations’ economy! Finally, if you enjoyed reading this, leave a comment so we can know your favorite subjects on the economy!