June 29, 2016

Former Clinton Trade Advisor Says T-TIP Likely On Hold After Brexit -AUDIO

U.S. and European trade negotiations will likely be on hold, according to a former USDA trade chief, after Britain voted to exit the European Union.

Paul Drazek, who ran USDA’s trade shop in the Clinton administration, says with all the confusion now surrounding Britain’s trade relations with the EU after Brexit, the U.S. suddenly faces a new trade reality across the Atlantic…

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But more importantly for the U.S., with Britain out, and one-sixth of the EU’s economic output gone, Washington is no longer negotiating with the same European Union…

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Britain will have to rewrite its own trade rules and re-do World Trade Organization membership, along with trade deals with the U.S. and others, under an expected new government. Drazek also argues London will no longer have trade freedom in Europe…

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He says there is no question that the European Union will be diminished once Britain does the legal work over two or three years to leave. And if others, including France or Norway, decide the same route, the EU will be further diminished as a trading partner for the U.S. and American agriculture.

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What The Brexit Means For Markets

Last nights vote in favor of Britain leaving the European Union has thrown world markets, and politics, for a loop. Global financial and stocks markets were thrown into upheaval, and that volatility likely isn’t over according to Mike Zuzolo of Global Commodity Analytics and consulting:

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Zuzolo believes that while its not a certainty that a banking crisis will develop, he likens the current financial atmosphere to that of a storm, conditions are ripe for a dramatic event:

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As for why markets didn’t see this coming? Zuzolo says the vote was likely a UK reaction to European Union immigration policies that they didn’t agree with, something the market has a tough time comprehending.

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Brexit Vote Could Impact T-TIP Negotiations

Voters in the United Kingdom will decide Thursday on whether to remain one of the 28 nations in the European Union. The contentious vote comes as the United States is negotiating the Transatlantic Trade and Investment Partnership with the EU.  Doctor Jullian Binfield with the University of Missouri says Britain would be in need of trade agreements should it split from the union…

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However, Binfield warns that without the UK, the European Union may become less receptive to some of the issues that the US wants to address in a proposed deal…

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Binfield is director of international programs at the Food and Agricultural Policy Research Institute, based at the University of Missouri. Campaigns both for and against Britain’s continued membership in the European Union continued over the weekend, following the murder of a lawmaker who supported Britain remaining in the EU.

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