Brexit: what do the experts say?

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Source: blogs.lse.ac.uk

Two days ago the Brits voted to leave EU with a 4% majority.

Well, actually it is England and Wales, really, as Ireland and Scotland seemed to overwhelmingly wanted to remain in EU.

I haven’t thought much about it since it had nothing to do with me, but I couldn’t help reading up on it because my tlist was kind of flooded with it for the past couple of days.

But then I realised that the outcome of that referendum has created an interesting situation that may affect the UK in the long term.

Not that people will no longer call them Europeans as they had never considered themselves as Europeans, but more on how they will now have to extricate themselves gracefully from the European community – economically, socially, and politically.

After all, they have been part of that community since the formation of the European Community in the early 70’s.

I am not an economics expert, so I will not comment on the economic ramification of the UK pulling out of EU, but this WSJ article seems to indicate “‘Brexit’ Unlikely to Have Big Impact on U.K. Oil and Gas Market”.

Well, I guess if we look at O&G in isolation, that may seem to be the case, but if we were to look at it from a bigger perspective, the impact is quite substantial.

I was made to understand that the biggest issue that drove the “Leave EU” campaign was immigration laws – Brits who supported “Leave EU” resent EU citizens from poorer EU countries getting across the channel and taking up jobs in the UK.

That’s like Johor “citizens” resenting folks from Kelantan, Kedah, Pulau Pinang coming over setting up businesses and taking up jobs in Johor, so they took a referendum to leave the federation to make it less easy for non-Johoreans to have access to Johor’s “wealth”.

Too silly if you ask me – if your business/skill is competitive, you should have no fear of competing against another, after all, you have the advantage of “home ground”.

The British politicians and political activists too were resentful of the EU as they felt that they were subjected to EU legislation, regulations and whatever they consider as undermining their sovereignty – seems to me that they just don’t share many cultural and social values with the Europeans.

That’s like Johor politicians resenting Federal legislation, regulations and whatever that they feel as undermining their sovereignty and opted to urge their people to vote Johor out of the Federation.

Anyways, with the Brexit, that also means some 3 million EU nationals currently residing and working in the UK will probably be deported – while EU members may just do the same to some 1.3 million Brits working in their countries – or at least start to use their international passports more often.

That’s like all those not holding 01 ICs will be deported out of Johor and those who do will be deported out of everywhere else back to Johor, and you will need a passport to enter or leave Johor – oh wait, there will be new IC’s for Johor citizens too.

Companies operating in both the UK and the EU will have to be compliant to two different sets of law or may just have to decide where their countries of origin were.

Goods and services from the UK entering the EU will now be subject to the same conditions that goods and services coming from other countries including Malaysia.

I wonder whether the UK will still get any kind of preferential treatment from EU countries during trade negotiations after a referendum that obviously indicated that the Brits considered the EU to be beneath them, or they will begin looking for alternatives to British goods and services.

Norway is an example of a non-EU member who got preferential treatment, but then Norway had no problem adhering to EU’s terms and conditions, which of course the UK may not be willing to do as the point of leaving EU was “to escape its burdensome regulations”.

Then of course there is that collective power of a large and well established market with their own “old world colonial glamour” across the globe that sells a lot of glamorous goods and services such as fine wines, fancy cars and over-priced vacations.

 

 

 

 

 

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