Brexit will have mostly negative effect on American interests in Europe

BrexitBrexit will have mostly negative effect on American interests in Europe, as London is one of Washington’s allies in security and free markets. This shows a report by the US analytical center Rand Corporation. The European Union without the United Kingdom “may be much more prone to creating barriers for companies outside the EU”, potentially damaging the US economy, says the BBC’s half-funded funding from the US government.

According to the report, most US companies invest in the UK because it offers access to European markets. The report also states that, as far as defense policy is concerned, London is an ally of Washington, as it often acts as a guarantor for EU measures not to the detriment of NATO and the transatlantic partnership.

At the same time, it is clear from the text that almost all possible scenarios for relations between Britain and the EU will be considerably less advantageous for both countries than London remains in the community.

The worst possible scenario for the UK would be the one without Brexit, which will have serious consequences on the country’s growth. If it comes to it, Britain would be 4.9% poorer in 2029 than if it stayed in the EU. This option will have negative consequences for the Union, but they will be relatively smaller.

In addition, returning to World Trade Organization (WTO) rules will reduce foreign direct investment in the UK by about 7.8 billion USD. There will also be a drop in the case of a trade agreement with the EU that will be on the order of 3.4 billion USD. This represents a 9% reduction in investment compared to their membership levels.