China and the US are predicted to reap huge benefits should the UK leave the EU without a deal. This is because Europe will be left “fractured” by its divorce from Britain, Professor of Economics Richard Wolff told RT.
On Wednesday, Brussels agreed to extend the Brexit deadline until October 31, thus giving London an additional six months to find “the best possible solution” for leaving the bloc as UK PM Theresa May battles with MPs to agree on a deal. However, businesses inside Britain and all across Europe want this “endless soap opera” to be settled, Wolff explained to RT’s Boom Bust show.
“The worst thing is uncertainty around it,” he told guest host Ben Swann. “Nobody knows whether to make an investment in one part of Europe or another, because they don’t know what Europe will mean in terms of where they can sell and where they can buy and what kind of profits they can make.”
Meanwhile, a new UN research document titled ‘No-deal Brexit: the trade winners and losers’ has warned that the UK’s withdrawal “will alter the ability of non-EU countries to export to the UK market,” leaving space for other players to jump in. Chinese exports to the UK could therefore surge to $10.2 billion, while the US is expected to add $5.3 billion.
Such an outcome can be explained by the fact that British trade partners will have to literally choose sides amid the“dramatic” economic and political reorganization, the professor noted. For example, the Italians have already inked a deal of their own with Beijing.
“If you fracture up Europe, if France or Germany begin to see that they’re gonna have to choose sides… It’s not clear which way they’ll go: with the US, with Mr Trump, whom they don’t like; with a destroyed Britain, which they’re watching; or with the ascending China,” Wolff said. “We could see a dramatic reorganization of the world, politically and economically, because one of the big power blocs, Europe, is literally falling apart.”