INTRODUCTION
Britain is at a crossroads . The fact that a slim , but winning majority of voters — just 52 % — cast their ballots to leave the European Union in the referendum on 23 June 2016 sent shockwaves around the world , disrupting financial markets and sending the pound into a freefall that would see it eventually bottom-out at a 31-year low against the US dollar .
The referendum result was expected to be close , however , few people in the business world expected “ Brexit ” to become reality . The decision has weakened business sentiment both in the UK and Europe , at least for the near term , with many investors reluctant to make firm commitments in either territory until the shape and form of the post-Brexit landscape becomes clearer .
Negotiating this will likely be a highly complex , contentious and drawn-out process . Given the UK government has indicated it will trigger Article 50 of the Treaty of Lisbon — starting the two-year legal and political process to define the terms of Britain ’ s exit from the union — in the first quarter of 2017 , Ipsos Business Consulting takes the firm view that British businesses and their foreign trading partners simply cannot wait to see what happens . They must be proactive and strengthen trade with markets beyond Europe . If done properly , this could help build a further reaching , more productive global trading map that will create a larger market to the benefit of all .
CREATING OPPORTUNITY : How to build a new era of trade for post-Brexit Britain draws on our broad and deep expertise as emerging market specialists who also have a longstanding position on established markets around the world . It shines a light on the global playing field as it exists today , provides insight into 18 markets in Africa , the Americas , Asia and the Middle East and identifies key opportunities and challenges in each country .
The report does not try to analyse the decision to leave the EU in either political or economic terms . Plenty of other parties are doing that . Furthermore , Ipsos Business Consulting believes it is simply too early to be able to provide meaningful insight into such matters at a time when nobody knows what the terms and conditions of Brexit will be . For the sake of this report we simply assume that the referendum result will be respected by parliament and Brexit will become a reality in some form or other over the next two to three years . This position frees us to look at global trading opportunities and provide British businesses with a blueprint for moving forward .
The world is waiting It ’ s important to remember that the majority of British exports are currently destined for markets outside of the EU . The proportion of non-EU trade was forecast to increase over time well before the June referendum took place . In our view , Brexit will merely catalyse the process . Markets around the world will seek to normalise trade relations with Britain , and there are multiple mechanisms available , from existing WTO statutes to bilateral trade agreements .
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