EFFECTS OF THE BRITISH VOTE

Jun 26, 2016 Editorial

The decision by Britain to leave the European Union (EU) has shocked the world. It will have serious political and economic repercussions. The decision was made in a referendum called by the British Prime Minister, David Cameron, to quell the growing support of the anti-EU-UK Independence party and placate the strong Euro-skeptic right wing conservatives.
It was an unexpectedly bitter and divisive referendum that for a brief moment was brought to a stunning halt when Labour politician, Jo Cox, was murdered in the street last week. The news appeared to dampen the momentum of those who wanted Britain to leave the EU, but in the end their votes prevailed. The often lucky David Cameron made a gamble that has ended his political career and has set Britain on a course to leave the world’s most powerful international alliance.
The decision to leave the EU has stunned Britain and the EU, in particular David Cameron who in resigning as Prime Minister, said that he could not be the person to lead Britain out of the EU but would stay on as long as necessary to maintain stability.
Speaking to reporters at his official residence, Cameron said “I will do everything I can as prime minister to steady the ship over the coming weeks and months, but I do not think it would be right for me to try to be the captain that steers the country to its next destination.”
The referendum was a fateful miscalculation for Cameron who has a reputation for thriving under pressure and astutely assessing and judging political risks. Unlike general elections which must be held by democratic countries every four or five years, the golden rule is, never hold a referendum unless you are confident of winning it.
It appears that Cameron did not heed this advice as the majority of voters resisted his message that Britain is stronger, safer and more economically secure within the EU than it would be outside it.
The decision of Britain to divorce itself from the-28 nation club was traumatic. It has stunned the EU leaders who have urged Britain to leave as soon as possible amid fears that the devastating blow to European unity could spark a chain reaction of further referendums.
The uncompromising stance came after Prime Minister David Cameron announced his resignation and said he would leave the negotiations for Britain’s departure to a successor who will be named by October.
The results have rocked the stock markets which have tumbled by more than five percent in Asia and Europe. Since Britain has a major influence on other countries, the move may encourage other countries to follow suit.
CARICOM has always looked at the EU as a flagbearer for union; therefore the pull out by Britain could have implications for it going forward. It could further disintegrate towards a more single union? Guyana and the UK share a strong historical bond of friendship and cooperation at the bilateral level and in other spheres of engagement.
The vote to leave the EU means that the UK will eventually cease to be part of the relevant arrangements that govern their trade and other relations.
In terms of our exports to Britain, our exporters would receive less income in the coming days because of the decline in the pound sterling relative to our currency which is pegged to the US. dollar. On the other hand, for those who are importing goods from the United Kingdom, there is a benefit because it means that it will cost less to import, again due to the declining pound sterling.
However, given the current circumstances, it would be in the interests of both countries to renew their efforts to strengthen and expand their partnership in all areas, not least in relation to trade, investment and development cooperation.

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