It’s time for Africa: Brexit brings developing nations new opportunities

The UK left the European Union (EU) in January after a long and tedious process which saw Prime Minister Theresa May quit as the Conservative leader on June 7, 2019. Following the divorce, the EU and the UK will determine their future trade relations during the transition period which goes on until the end of this year. With this reorganisation, developing countries could see their exports to the UK increase. The EU could also offer a slightly bigger market for goods coming from these economies. However, this is dependent on whether the UK increases tariffs for third world countries. Trading with Britain under preferential terms With this, it is time for Africa as Brexit could create new opportunities for the continent which just became one the largest free trade area in the world with the AfCFTA which will be operational starting in June 2020. The UNCTAD notes that a no-deal Brexit could offer some opportunities for developing countries as trade barriers between the UK and the EU would benefit suppliers from third world countries. “By contrast, a deal between them (the UK and the EU) would preclude the incentive to turn to third countries,” notes a study by the UN