How Is Brexit Affecting Trade and Export Finance?

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How Is Brexit Affecting Trade and Export Finance?
Adam Smith Associates Blog September 18, 2017
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How Is Brexit Affecting Trade and Export Finance?
Adam Smith Associates Blog Seeptember 18,
2017
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How Is Brexit Affecting Trade and Export Finance?
Adam Smith Associates Blog September 18, 2017
The Brexit vote will take another couple years to
go into effect, but that doesn't mean businesses
can't start anticipating the changes.  While the
details of the Brexit deals' impact on export
finance aren't clear yet, there are several
areas that will likely be impacted in one way or
another. In this post, we'll examine how the
Brexit deal will impact future trade and export
finance.
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How Is Brexit Affecting Trade and Export Finance?
Adam Smith Associates Blog September 18, 2017
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How Is Brexit Affecting Trade and Export Finance?
Adam Smith Associates Blog September 18, 2017
What Brexit Means for Export Finance The world
of United Kingdom export finance is currently up
in the air, but there are key areas which will
likely be affected. The changes will be
contingent on the final trade agreements the UK
makes with the European Union and other nations.
Check out the list below to see what might
change
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How Is Brexit Affecting Trade and Export Finance?
Adam Smith Associates Blog September 18, 2017
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How Is Brexit Affecting Trade and Export Finance?
Adam Smith Associates Blog September 18, 2017
Lower Export Prices Depending on the nature of
the UK's future trade deals, prices for exported
goods could witness a drop.  If the UK continues
to export to countries within the European Union,
for example, producers might have to lower their
prices to make their products more attractive to
importers. Alternatively, if the UK enters into
trade agreements with different countries,
concerns regarding tariffs will be minimized.
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How Is Brexit Affecting Trade and Export Finance?
Adam Smith Associates Blog September 18, 2017
Different Export Markets The Brexit deal might
end up changing what countries the UK does
business with, depending on the final trade
deals reached. The UK already has access to
expansive export markets located in United
States, Canada, Japan, China, and the United
Arab Emirates. This list could expand, however,
if there's enough global interest from free
markets. In fact, the UK is currently promoting
that idea with its "Exporting Is
Great" campaign. Many free market countries are
already showing interest in entering into a UK
trade deal, actually. The UK could leverage its
strong ties with India, for example. Other
interested countries include Australia and South
Africa.
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How Is Brexit Affecting Trade and Export Finance?
Adam Smith Associates Blog September 18, 2017
Pound Exchange Rates
The impact on export finance and market access is
clouded with uncertainty and primarily revolves
around potential trade agreements made with the
European Union. Exchange rates for the Pound,
however, is a more cut and dry issue. Currently,
the Pound is proving stable, though, as
investors have accounted for the impact of Brexit
talks.
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How Is Brexit Affecting Trade and Export Finance?
Adam Smith Associates Blog September 18, 2017
Export Tariffs Export tariffs will become an
issue, but mainly for businesses that choose to
continue doing business with the European Union
as their leading market. Obstacles in this area
exist because the European Union will have to
ensure its regulations are met while preserving
its member's benefits. This could translate into
the previously mentioned lower prices. Larger
companies will be able to take that hit to their
profits. Smaller companies, however, will likely
have more trouble maintaining their profit
margins.
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How Is Brexit Affecting Trade and Export Finance?
Adam Smith Associates Blog September 18, 2017
Watching the News
The final outcome of the Brexit vote has yet to
be seen.  But don't fret just yet. The result
might actually be in your favor. To find the
latest developments on this ongoing story, check
out the Adam Smith Associates blog.
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errors or omissions in the blog contents.
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