Boris Johnson's resignation and the Brazil-UK trade relationship
Boris Johnson's departure as British Prime Minister
After three years as Prime Minister of the United Kingdom, Boris Johnson resigned from the post in July 2022, having as a trigger several scandals involving the British - including breaking the Covid-19 quarantine, lack of support within the Conservative Party and denunciations of harassment. The former prime minister was one of the main supporters of the United Kingdom's departure from the European Union, promising to take the decision forward since his candidacy. Brexit has been under discussion since 2016, following a referendum, which exposed that the majority of the British population believed the nation should leave the European Union. Ultimately, Boris Johnson got the British Parliament to pass Brexit — after his predecessor, Theresa May, failed to get that consent — and on 31 January 2020, the UK left the bloc for good
UK Market with Prime Minister's resignation
Em 2022, a Grã Brittany had a relatively high inflation rate — at 9.1%, the highest in 40 years — as well as slow growth for a large economy, according to the International Monetary Fund. This crisis was experienced during Boris Johnson's term, but will have to be addressed by the next prime minister.
UK-Brazil Trade
Brazil's economic relationship with the United Kingdom was not affected by the British nation's departure from the European Union, Brazilian exports grew by 5% between 2019 and 2020 — yielding US$1.08 billion. With the Ukrainian War, Brazilian coffee exports increased — ranging from 45% to 534% — to 24 other countries, including the United Kingdom. In addition, in June, Brazil sent around 10.26 million liters of ethanol, and due to the increase in the average price of the product, Brazilian profits are increasing. Brazil has also been gaining ground in the export of poultry to the United Kingdom, as the British have been having problems with the shortage of the merchandise — this trade can happen mainly in December, with Christmas and the increase in the purchase of turkey.
Could trade relations between Brazil and the UK be affected?
Dessa forma, é esperado that the change of prime minister in the United Kingdom does not cause a problem in trade with Brazil, since the products are essential for the country and even a sudden change - the British nation's departure from the European Union - did not affect this relationship. The growth of Brazilian exports from the second half of 2022 to the UK is likely to continue — having already increased by 6.6% between January and June.
Como a relação comercial entre os two countries can continue to make a profit for Brazil and Brazilian exporters, the assistance of an international consultancy for the export of products is essential. A market analysis would be a great measure to understand how to enter the British market in the best possible way, and this service is provided by Prisma Consultoria Internacional.
By: Juliana Maria Boscarato de Oliveira on 07/20/2022
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