On June 23, the British voted by a narrow margin to leave the European Union, and this history-making move is being referred to as the Brexit vote. The outcome sent shockwaves around the world, and caused many British citizens to feel as though their lives had been irreparably affected. Because Great Britain is such a powerful nation, the effects will be felt far from the source, and potentially for generations to come. There are several ways in which the Brexit decision might impact Canadians.
Canadian Businesses Doing Business With British Companies May Suffer
Although the percentage of Canadian businesses that partner with companies in Great Britain is relatively small, those that do may have reason to worry. After news broke about the Brexit vote, the value of the pound plummeted to rates not seen since the 1980s. If a rebound does not occur, and the lost value causes British businesses to experience hard times, some may decide they can no longer afford to continue doing business with Canadians or businesses from other nations.
It Could Limit Economic Growth
Although it’s too soon to tell whether Brexit might trigger a global downturn, some analysts wonder if the actions of Great Britain might inspire other nations that are current members of the European Union to leave as well. If numerous nations decide it’s best to leave, the European Union could be left in turmoil, with the aftermath certainly felt by Canadians. As a result, economic growth could be hindered when Canada and other non-European nations try to simply sustain themselves, rather than attempt to make economic gains.
Canadian Agricultural Exports May Increase
Before the Brexit vote, most of Great Britain’s agricultural imports came from Ireland. However, the neighboring country is not in a position to negotiate any special bilateral trade agreements with Great Britain and, since it is a European Union member, would have to abide by whatever agreement is made between Great Britain and the European Union.
Some analysts suggested Great Britain may try to negotiate separate trade agreements between non-European countries it already has favorable relationships with. Canada is one possibility. If that becomes a reality, it’s one example of how the Brexit decision wouldn’t be wholly bad for Canadians.
There Could Be Some Negative Effects on Your Retirement Portfolio
Financial analysts have expressed the opinion that since Great Britain has left the European Union, it might negatively affect people who are investing for their retirements. However, there’s no cause for concern just yet. That sentiment is expressed in the following information from Fisher Investments Canada on Brexit: “Many unknowns tied to the vote won’t become clear for years, too long to materially impact stocks.â€
Even so, it’s a smart idea to think ahead and meet with a specialist from a Canadian financial investments firm. Whether you choose to make an appointment with Fisher Investments Canada, or go another firm you’ve found in your preferred Canadian city, it’s not hard to find a retirement specialist so you can put your mind at ease about what the future holds. Doing that could be especially smart if you have a very diverse portfolio that includes stocks from companies based in the European Union as well as Canada.
Getting Your Favorite British Foods May Not Be As Simple
Whether you were craving tea, biscuits, or both, getting those British staples usually hasn’t been too hard for Canadians. In many cases, you were probably able to find them stocked in supermarket aisles, likely priced a bit higher than what you’d pay for something that originated in Canada, but not a price that would break the bank.
Moving forward, getting the British foods you love won’t be impossible, but you might start discovering the items aren’t stocked as frequently, and that the prices are higher when you buy them. Economic analysts believe more foods created in Great Britain will stay there, compared to before the Brexit vote. If that turns out to be true, you’ll likely see a small adverse impact regarding the amount and variety of British foods seen in Canada.
Hopefully, the information you’ve just read brings some clarity in regards to how the Brexit vote may impact your future as a Canadian resident. As has been emphasized throughout this piece, it’s still too early to know things for certain, but is always good to know what the coming days may bring.
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