Economist: Brexit ‘a difficult divorce'
With just a few hours until the United Kingdom finally leaves the European Union, North West University economist Raymond Parsons says it won't be an easy split for the two.
Although a few other Brexit dates have come and gone, the UK will leave the economic bloc by midnight Friday 31 January after Prime Minister Boris Johnson's Brexit bill cleared Parliament and was given royal assent, making it law.
However that doesn't mean things will change overnight, says Parsons.
Britain must still undergo a transition period until the end of the year where the country will no longer be a member state but will still be subject to EU rules and regulations.
Parsons says it's important to realise that Brexit is a process and not an event.
"It's a big fork in the road of the economic relationship which has been going on for a long time. One can't expect to have an economic marriage for nearly 50 years that you will have a quick or an easy divorce.
"Up to the end of the year, both the United Kingdom and the EU will have to negotiate their future economic relationships - will they have a free trade area, what would they do? And in the meantime the existing arrangements remain in place."
Parsons warns that if the Brexit process fails to yield an agreement about future economic relations, new uncertainties are likely to emerge.
On the South African front, it's business as usual.
"We have a very important stake of course in the British economy but we are protected by the fact that a few months ago we signed an agreement with the UK that our existing tariffs will stay in place in the post-Brexit period.
"Our business is protected and has certainty and predictability for the time being. We can continue to do business with the United Kingdom on the basis of our current arrangement."
Parsons says the country must continue to monitor the next few months for developments.
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