Great Britain’s decision to leave the European Union will reverberate beyond Europe’s borders and serve as a history lesson on trade, an economics professor told a gathering at Carnegie Mellon University in Qatar (CMU-Q) recently.
“Brexit will have serious repercussions for the UK and the
European Union, but I hope it will be a case study in what not to do in an
integrated economy,” Michael Frenkel, of the WHU –
Otto Beisheim School of Management, said at CMU-Q’s dean’s lecture. “We know that in economic terms, trade is a
win-win, and the elimination of trade is a lose-lose.”
Britain does not have a separate trade agreement, so when it
leaves the EU it will lose the current trade protections of EU membership. The country’s trade regulations will default to those of the World Trade Organization and result
in higher tariffs and negative effects on trade worldwide, Frenkel said.
“Brexit is a complex issue that will have implications far
beyond the borders of the UK and the European Union,” CMU-Q Dean and CEO
Ilker Baybars said. “Professor Frenkel’s insights will be helpful to our
students and faculty as this unprecedented event in the history of international
trade unfolds in the coming months and years.”
