Countries like The Bahamas will have to wait before assessing the full impact of the British exit (BREXIT) from the European Union (EU).

On Thursday, June 23, a referendum held by the United Kingdom, (which comprises, England, Scotland, Wales and Northern Ireland), resulted in the UK’s decision to sever ties with the European Union.

Countries around the world, including The Bahamas, have been weighing in on the impact this decision will have on their economies.

A press conference discussing the details was held at the Ministry of Foreign Affairs, Wednesday, June 29. During the press conference, Minister of Foreign Affairs and Immigration, the Hon. Fred Mitchell said that it is too “early” to predict the impact of the decision.

The Minister said: “Last week the British electorate voted to sever ties with the European Union. That decision as it stands does not currently affect our participation in the CARIFORUM-European Union Economic Partnership Agreement (EPA), a reciprocal trade agreement that was signed by The Bahamas in 2008 and one to which the UK is also a signatory.

“The effects of that decision will no doubt have some impact upon The Bahamas, CARICOM and CARIFORUM in the long run. It is difficult to predict the degree to which there will be any fallout in our trading relationship with Britain and the European Union as the events are still unfolding.”

Minister Mitchell explained that Article 244 of the EPA binds all of its signatory member countries, including the UK, until a new member country denounces. In addition, he said that the formal process of withdrawing from the EU is provided under Article 50 of the Lisbon Treaty when the UK would have to give formal notification to the EU of its intention to withdraw.

“Once that notification is given, there is a two year window for the negotiations to be completed,” said Minister Mitchell. “If the negotiations are not completed within the two years, the existing EU treaty arrangements with the UK will terminate unless all EU members agree to continue the negotiation.”

He said that based on this, it is “reasonable” to conclude there will likely be no change in the status of the existing treaty arrangements between the EU and the UK at the very least until 2018.

The term ‘BREXIT” refers to the United Kingdom leaving the European Union (EU) that is the “British exit”. The EU is an association of states, which comprises of most of the countries of Europe. The union started out as a trading bloc, but was later extended to include areas such as social and security.

Although, Britain has signed on as a member state, it had opted out of the common currency (Euro), the borderless travel zone (Schengen) and many other expressions of integration.

By: Betty Vedrine

Source: Bahamas Information Services