Not Much to Lose
Some economists have shown little concern, stating that any deal with the U.K. will have little to no effect on the U.S. Economy.
Michael Pearce, a senior economist at Capital Economics, believes the U.S. would gain very little.
“The more economically meaningful measures would be kind of more regulatory alignment around some of these more strategic sectors perhaps — you know, thinking about biotechnology and pharmaceutical regulation, things like that. But progress on anything like that would be a long way in the future. I think in the near term, it is pretty small, I’m afraid.”
He argued the U.S. does not have “much to lose” from any type of Brexit because “direct trade links are really pretty small.” U.S. exports to the U.K. represent less than 1% of the larger country’s $20 trillion economy, he added.
Even if the U.K. left the EU without a deal, the so-called no-deal Brexit that many critics fear will devastate the U.K. economy, Pearce said a major disruption in American financial markets in unlikely. “Markets are pretty well braced for this outcome of a no-deal,” he said. “Yes, obviously, it would be a negative for the markets, but I don’t think one expects it to be to have a long, persistent impact on financial markets.”
