Britain may join the trade agreement between the US, Canada and Mexico - NAFTA if the European Union opts a trade deal after Brexit. British ministers are exploring the idea of joining the North American Free Trade Agreement (NAFTA) if, in March 2019, London leaves the EU without a free trade agreement.
The UK is currently negotiating Brexit terms with the EU. However, Brussels refuses to accept Prime Minister Teresa May's request to transfer the discussion on the subject of the trade agreement after leaving the bloc.
Since 2019. British ministers are exploring the possibilities for action if the fifth largest economy in the world leaves the EU without a clear deal. Although London is trying to shape a new trade deal with the EU, some Brexit supporters support joining NAFTA, although US President Donald Trump is trying to renegotiate the deal.
If Britain joins NAFTA, producers in the country who want to export to the EU and North America will have to comply with completely different rules. This means that the island will also have to change its service model, competition policy and data protection.
The EU is Britain's largest export market. In August, about 50% of British exports were for the bloc. The United States is the largest single market for UK exports. Export to the country of unlimited opportunities amounts to only 14%.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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