Uncertainty is lingering upon African Countries in the Present
Situation
UK is going towards a hard Brexit due to what steps its Prime
Minister Theresa May took earlier this year. And by hard Brexit means the
country is facing problems with EU agreements.
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| African State |
With them there are areas where
concessions are present for UK, but after the exit, EU refuses to carry on with
those agreements till now and if this so happens UK will be bombarded with trade
tariffs. To make a balance in the economy the prices should be raise but this
will put a bad impact on the ongoing trade as it will discourage the countries
to do business. So, the situation is not only difficult for both sides but it
is also putting an extra pressure on the business. Continue to read more about African
Countries must visit, Cargo to
Africa first.
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| Prime Minister Theresa May |
What Strategy should be followed?
This question is becoming very important for Africa that due to
growing tensions between EU and UK what line should be followed. On one side
Africa do not want to face the wrath of EU as the economy of Africa depends on
trade and due to the member of common wealth Africa gets many benefits and have
acquired many advantages due to this. On the other hand UK is a major trade
partner of Africa especially South Africa and there are many projects that are
going on in the countries of the continent due to the contribution of UK.
Africa is facing a major dilemma due to the situation as it does not want to
loose either side.
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| European Union |
Comparison of UK Trade with EU and Africa:
If compared the UK trade with both EU and Africa the results are
astonishing. The consideration of compensating the trade deficiency that will
result from Brexit by the African trade will be a total loss. As if we see the
progress of UK-Africa trade in past few years it is been declining gradually
and the figures have fallen from 32.1bn pounds to 21.5bn which is a big
difference. On the other hand the UK-EU trade figures show an increase from
339.3bn to 382.2bn which is a promising enough increase. So it will be an
unwise notion if one thinks that they can cover the trade with EU countries
with just one continent Africa. Before
hiring any Air Cargo to
Africa from UK service, contact Cargotoafrica.co.uk
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| Air Cargo |
African Trade Comparison:
Considering the African trade is also very
important in this respect as it will help in understanding that what is important
for Africa at this point. Africa’s trade with 27 EU countries reached 259.3bn
euros in 2016 and if we compare the UK trade it is hardly 10%. So who is more
important from these records is very obvious i.e. EU. 27 countries versus one
country, only a fool will not see what can be expected.
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| Brexit |
But the problem is that
UK is very important for small countries in Africa as there development depends
on the relation. Also a big contribution of UK trade in the economy of South
Africa is not a thing that can be ignored. All these reasons demand a steady
consideration of the situation to make agreement of future plan. For any
agreement to get finalized, Africa have to wait for the Brexit to really happen which will clear the situation fro any further steps.
