Latin America has much to lose from Brexit, says CEAL


25th June 2016

Mercosur-EU talks could be first casualty
Latin America will inevitably feel the pinch after Brexit was approved by 52 percent of British voters last week. Ingo Plöger, head of the Business Council of Latin America (CEAL), a São Paulo-based organization, says that trade links between the region and the UK may be rather limited, but the region has much to lose indirectly.
The ongoing negotiations between Mercosur and the EU may be the first casualty. “The UK has been Latin America’s best ally in terms of trade liberalization,” he told Latin Trade. “It has also adopted a stronger free trade stance regarding agro-related issues. Now it is going to be more difficult for Mercosur to negotiate with the EU,” he said. The EU has long been accused by South Americans to protect its agriculture from foreign competition.
“I would rather have avoided a break up [of the EU]. But since this has happened, we need to review our foreign trade strategies,” said José Serra, Brazil’s foreign trade minister. “Negotiating with the UK separately, as we shall do, will in a way give the EU a stimulus to negotiate with us,” he said.
The British referendum outcome has also caused havoc on financial markets, and will cause volatility on emerging market currencies, including Latin America’s.
Brexit has triggered a sharp depreciation of the British pound on the currency markets, which will make Latin American exports less competitive. Plöger said that Colombia is the country that has the strongest …

Click here : Log In To Read The Full Story
Subscribe to latin trade magazine
Click here to begin a subscription for Latin Trade magazine, available both in print and online.
Subscribe to lt.com
Click here to begin an online subscription to LT.com, with its extensive ranking, indices, and market intelligence on Latin America.
Subscribe to free Newsletter
Subscribe here to our free newsletter – getting the latest business headlines from Latin America in your inbox every day.
LOGIN
FOR READ MORE LOGIN
LOGIN
LOGIN
Forgot your password
SEND
READ MORE
Aenean sollicitudin, lorem quis bibendum auctor, nisi elit consequat ipsum, nec sagittis sem nibh id elit. Duis sed odio sit amet nibh vulputate cursus a sit amet mauris. Morbi accumsan ipsum velit. Nam nec tellus a odio tincidunt auctor a ornare odio. Sed non mauris vitae erat consequat auctor eu in elit.Aenean sollicitudin, lorem quis bibendum auctor, nisi elit consequat ipsum, nec sagittis sem nibh id elit. Duis sed odio sit amet nibh vulputate cursus a sit amet mauris. Morbi accumsan ipsum velit. Nam nec tellus a odio tincidunt auctor a ornare odio. Sed non mauris vitae erat consequat auctor eu in elit.
Read the current issue of Latin Trade Magazine

Access Denied

Please log in or register

Read Our Latest Issue

FOLLOW US