Thoughts on Brexit: Britain is probably better off without the EU

I think it was a huge surprise for many of us when Britain voted out of the EU, Thursday the 23rd of June, 2016.

Now, in the aftermath of it, it seems there is an itchy panic of what is going to happen with Britain in the future. This, especially, involves the younger generations, amongst whom the majority did not vote for an EU exit. But why so worried? Britain is probably better off without the EU.

Certainly, there are some disadvantages not being part of the EU. It is said time and again that there will no longer be a free trade market, implicating tariffs etc. etc. etc. It seems there is a fear about what will happen once Britain has completely left the EU.

But won’t a bilateral agreement be the best solution for both parts? Take for instance the car industry. The UK is the biggest single export market for German automakers. Imagine what will happen, if the EU insists on incurring tariffs upon trading – or decline trading overall. How many people will lose their jobs, let alone in Germany? Mathias Wissman, the president of the Verband der Automobilindustrie, understandably suggests that: “Europe’s politicians must now work to keep tariff-free trade between the EU and the U.K.”

Indeed this seems to be the most prosperous solution for both parts. Why would the EU be interested in losing deals that they themselves depend on? Why would they want to risk further unemployment (as though this isn’t a problem already)?

Switzerland rejected becoming a member of the EU in 1992, opting for a bilateral agreement in 1999. The agreement included: “free movement of persons, technical trade barriers, public procurement, agriculture and air and land transport (road and rail)” (europa eu website). The Swiss economy has been ranked the worlds most competitive. Unemployment is as low as 3.8 percent. Being the EU’s third largest economic partner,  Switzerland won’t go bankrupt in any foreseeable future.

And what about the deals outside EU? Surely there are deals to made with Africa, Asia and America. If a small country (inhabitation wise) like Iceland, can make a deal with China, why wouldn’t a much bigger country like Britain be able to settle a deal?

Is there really a reason to fear the aftermath of Brexit, or is this just a knee-jerk reaction?

 

Sources:

http://www.autonews.com/article/20160624/COPY01/306249977/automakers-call-for-tariff-free-trade-between-uk-and-eu-after-brexit

http://europa.eu/rapid/press-release_MEMO-14-100_en.htm

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