These go beyond whatever relationship the bickering neighbours have with each other, says David Detomasi, associate professor of international business at Queen’s University’s Smith School of Business in Kingston, Ont.“I don’t think the problems ... have a lot to do with trading relationships with other countries [such as Canada]. I think Britain’s main problem with Europe has been the appearance of being subservient to EU rules,” Mr. Detomasi explains.
Brian Kingston, vice-president of international and fiscal policy at the Business Council of Canada, says that Britain recently released a tariff schedule governing trade with Canada that would apply regardless of the terms Britain leaves Europe under. “There will be implications. The U.K. is our fifth-largest trading partner globally. It’s a significant market, and a hard Brexit ultimately will have an impact on the U.K. economy, and that will ultimately mean less demand for Canadian goods and services,” Mr. Kingston says.Today, it does look as if Britain will have to make a hard exit. The EU has granted Britain until Oct.
Advocates of a hard Brexit say it’s preferable to prolonged negotiations with Europe because a “soft” plan could tie Britain to European trade rules for years, while the British will no longer have any say in the rules of a club they have quit. “This would potentially be disastrous for Canadian companies that have set up in Britain as a platform for access to the larger European market,” Mr. Kingston says.
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