UK parliament’s Brussels decision will negatively impact the country’s economy

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UK parliament’s Brussels decision will negatively impact the country’s economy
UK parliament’s Brussels decision will negatively impact the country’s economy

The British pound has stabilized in the past day, but it is still uncertain how it will change in the near future. There are still chances that the UK will have a deal with the EU and the free trade will remain after the year ends. Uncertainty is the biggest problem for the Uk right now. The sterling is weakened but the Parliament has already passed one stage of the Market bill. Eu has already given the Uk the elements of the legislation and this will help Uk to have the right view of the withdrawal Agreement. 

The pound has already recovered from its losses and it might don’t remain in this shape because of the uncertainty of everything in the country. Still, there is hope in the future and there is more good news than bad news. The UK is still waiting for more volatility in the trading scene because the benefits could help the economy as Mark McCormick (The global head of Forex strategy at TD securities) says.

The UK is motivated to reach the internal market Bill and now everyone is thinking about the EU. The UK is waiting for a response. But there is also a huge fact that the EU is also very much interacted with the UK because of the businesses they have. They are also waiting for the UK’s explanations about Forex trading because London is the biggest exchange market since they have 43% of global trading. 

Not only the UK needs the EU. The EU also needs the UK, because they don’t have as big a market as London has and it can be a big risk for them to underestimate the UK’s power in this field. Many people also think that the EU and the UK will fall into place together with a Brexit agreement because it’s the healthiest way for both to be included in the global market.

The financial conduct authority (FCA) is the regulator for the FX brokers in the UK. Since the UK is having the biggest exchange market in the world, they need strict regulations in the country. They have been doing this for years for now, so of course, they are far more experienced than the authorities in the EU. There are dozens of Forex brokers who are aspiring to have this license because it makes them trustworthy and more powerful in the market. That is why the EU traders are searching for licensed and FCA regulated UK forex brokers not only in the European Union but outside of it too. 

For an FCA it is a normal thing to pay attention to the quality of the traders and brokers. There were many cases when they were made to pay huge fines for price manipulations or even arrested people for acting against the client’s interests. The good thing about this Financial authority is that if someone with FCA regulation will lose their money in an uncertain and absurd situation, FCA will cover the client’s retail. The EU is in need to have this kind of regulation from the Financial Conduct Authority because as the market is growing, the scammers are trying to take advantage of the vulnerable people and to steal dozens of money from them. 

Why the internal market bill could be a negotiating ploy 

 A week ago the UK got an Internal Market bill. This will secure the country’s Market and will be a big help when the Brexit agreement will be over. Currently, the UK is not guaranteed that the EU will free their trade market for them, but there are some hopes too. The UK will become stronger and stronger when the COVID-19 will be the past and the economy will soon get back to the norm since the reforms are already starting and the ultimate success in the future. 

The bill will help the UK business environment to better its variety and competitiveness. The internal market will allow the UK to reach international trade agreements, which will give them the benefits they need right now. 

UK market access

The bill is to govern access to the UK’s market for goods and services. That will allow other countries investors and businesses to legally sell and to buy the items in the UK, and this will be a mutual recall. 

To have the tendency of non-discrimination, the UK will prevent the parts of the UK from treating goods to be no less favorable than other parts of the UK. That will be the helping hand for the businesses which are coming from different regions. The taxes will be excluded from mutual recall. 

Financial assistance powers 

The ministers will have the power to help different fields in the country. This can be used in the replacement of the funding that the EU gives out within the UK. The bill is good for parliament also because they will think through everything and will help and control everyone who is in need. 

Exporting from the EU

Exporting from the EU will be changed from 1 January 2021. Businesses in Great Britain will need to do some additional actions in order to be included in the new agreement. 

During the transition period, which will last until 31 December 2020. Nothing will change for citizens, investors, or businesses. These changes will be a risk for the UK economy and they need to be ready at that time to put up with new rules and regulations. 

Brexit will affect your business if:

  1. You are selling goods or services in the UK
  2. Your business is moving the goods and services through the UK
  3. If you use UK materials to trade with the EU
  4. If you buy goods from the UK

In order to continue your business without interruption, you will need to have an account for VAT in the EU country (Where you deliver goods from the UK) and you will need to get used to the new rules which will be different VAT rules and procedures in order to do transactions.

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