Could Brexit Kill the Transatlantic Trade and Investment Partnership? [VIDEO]
This week Britain decided to leave the European Union (EU) in a historical vote nicknamed Brexit. How will this impact trade agreements currently being discussed between the U.S. and EU? That’s still unknown but analysts seem to agree on one thing: The Transatlantic Trade Investment Partnership (T-TIP) is a likely casualty of the move by Britain.
“T-TIP is dead,” says Jim Wiesemeyer of Informa Economics. “You can bolt it shut. In fact, I think they put an incinerator to it.”
Naomi Blohm of Stewart-Peterson says it’s going to be a major hurdle to try to overcome Brexit to see T-TIP happen but there could be opportunity depending on what other countries in the E.U. do. “Now there is concern about what if the UK now suddenly tries to do a bilateral deal with the U.S. separate of T-TIP.”
Mike North of Commodity Risk Management Group seems to be the most optimistic about the situation and not because he thinks T-TIP will be finished. “We don’t do a ton of business there,” he says. “While we do some business there on the ag side we don’t do a lot.” North says he thinks all of the trade deals, including The Trans-Pacific Partnership, are off the table for a while.
“It’s going to take two or three years for them to leave the EU,” he says. “It’s not like yesterday they were in, today they are out. I believe that as we go through that process there will be some greater clarity as to what role this plays in these.”