The Economic Impact Of the United Kingdom Exiting The European Union

According to Flavio Maluf, the exit of the United Kingdom from the EU has some severe implications for the EU, their global trading partners, and for the UK itself. Following the announcement in 2016, the most immediate impact was the weakening of the Sterling Pound, falling to an all-time low since 1985. There was also a slump in major European stock markets, some dropping by more than 12%.

 

By isolating itself from the EU, there will be a two-fold effect on the economy of the UK. First, it will enable UK to enter into bilateral trade agreements, with external partners such as Brazil, which was not previously supported by EU standards, thereby bolstering their economy. Secondly, it will affect the trade between the UK and its major partners in the EU because they will not be able to take part in free trade characterized by the lack of set quotas and low tariffs. It will also generate great uncertainty in the EU because most of its institutions are deeply entrenched in the UK.

 

Background Information

 

Flavio Maluf is a Brazilian businessman based in Sao Paulo. He is currently the President of the Eucatex Group. His main areas of specialization include accounting, foreign exchange and trade principles, and rural management. He holds a Bachelor’s degree in Mechanical Engineering from the Armando Alvares Penteado Foundation.

 

He assumed the role of President of the Eucatex Group in 2005. The group was established in 1951 and specializes in the manufacturing and retailing of insulation and wall linings from eucalyptus wood fibers. At present, Eucatex serves local and foreign clients in furniture production, automotive assembly, civil construction, industrial packaging, and toy industries.

 

Under the leadership of Flavio Maluf, the Eucatex Group has achieved ISO 14001 and ISO 9001 certifications, as well as being awarded the Green Seal by the Forest Stewardship Council. The group has pioneered the first industrial-scale wood recycling plant in South America. Eucatex also has a Forestry Unit that contributes to the firm’s goal of maintaining strict economic, environmental, and social standards.