BLOG

Uncertainty hovering over the stock market with low trend

British flag has been standing high among the global trade and still for cargo to India as well. There are few lifelines for UK who are investing in Britain’s major projects while some have a major contribution in trade and businesses inside their territory.

So, the UK is an important land in the international market. But this entire scenario was when the UK was a part of EU and not an independent state in every respect. To maintain its independence in every sector especially trade.

The referendum lets this state gain that independent state but as the time is passing rather than having a clarity in situation things are becoming more ambiguous. Some political and technical matters are restraining to come to a deal with EU for the exit.

Trade and the stock market is getting affected by all these things and a lower trend was seen on Friday this August. There has been a positive initiative from EU giving favour to the UK with an unprecedented partnership which has never been offered to an out of bloc country.

Hopefully, there will be a settlement to end this uninviting situation.

Time and deal

There are forwarded efforts from both sides but the problem is that there has to be a deal which both sides agree upon. Time is the problem which needs to be considered. Whenever a deal will finalize, there has to be agreement on it so that it could be presented to the EU countries to agree upon.

So, time is needed and for that, a quick deal is also needed. If on the other hand where there is a no-deal-Brexit then things get a little harder to digest for Britain. Now, this positive step from EU doesn’t mean that there will be an agreement that will harm a nation.

The delays that have happened created the situation where the UK is now, but still, there is time to straighten things up.

An expensive entrance

UK government is putting forward outcomes of exiting without any pact and one of them is the increase of tariffs. EU products have to pay the 20% value-added tax and show full documents before entering the British border and the same is for the UK while exporting.

The thing is that there have to be serious talks about what has to be done when such a situation arises. For now, it seems that a full-blown customs controls are going to be implied by the UK government on EU entrance. Which, if seen critically is not in favour of any one of the parties.

Productivity needs clearance

To be an exporting superpower you have to have stable trade agreements so that some help can be obtained from others. No one can survive alone successfully in this world and the same is the case with the UK.

There are businesses working across the borders and for them to survive friendly relations is important and to get things from there in the country or doing exports. To get access to international business the clearance from borders is very important. Hopefully, till October things get where they should be.