Emerging Issues: BREXIT - Impact on Developing Countries

Brexit is an abbreviation term used to refer to British exit from the European Union following the decision through a vote on 23rd of June 2016. As a result, new trade policies were designed to look into the United Kingdoms new strategic interests (Adeoye, 2021). The majority of Brexit supporters have claimed the need to redefine UKs role in international politics, with trade at the core. British have henceforth been engaged in negotiating trade agreements to pursue national interests and retain global leadership (Moradlou et al. 2020). This is done through international development assistance to lure most developing countries into trade agreements with the UK (Pounder & Wollenberg 2020). Besides, most of the UKs global leadership is due to its link with the developing countries. Also, before Brexit, the UK has been advocating for the use of European Union trade policy to enhance development amongst developing countries and contributed a significant amount of its aid to assist developing countries in diversifying and increasing their trade (Perez & Olivie 2020).

Brexit has consequently impacted developing countries in many ways. One, Brexit has caused a state of fear and hesitancy amongst the developing countries as far as their engagement with the UK in trade activities is concerned. After the Brexit, the UK is championing trade and development in developing countries like Kenya through new trade agreements, new aids, and new tools of the trade. The UK is also striving to make trade policies work more efficiently and effectively in enhancing development opportunities. Nonetheless, there is hesitancy if the UK will assume such a role willingly and effectively. Also, there is fear amongst the developing countries that the UK is likely to overlook them in the future following the magnitude and number of negotiation tasks the UK plans to engage in (Kohnert, 2020).

Two, Brexit has resulted in the development and enactment of new trade policies with the developing countries. According to Alan Winters, UK trade policies with the developing countries should appreciate the heterogeneity among the countries that are still developing; hence, need for a pragmatic and straightforward approach (Adeoye, 2021). Nonetheless, Alan also claims that such policy has to be made cognizant that as a minor player, the UK can lose direct influence on policies within developing countries (Kohnert, 2020). On the other hand, according to Adrian Wood, the UK will face several internal challenges in formulating trade policies towards developing countries. Moreover, the development assistance is not well known to the Brexit supporters, thus, creating pressure for trade restriction imposition (Perez & Olivie 2020). Also, considering the uncertainty on the UKs evolution of new trade policy, developing countries like Kenya in East Africa find it hectic to assess what they can get plus what they want out of negotiation with the UK. As a result, most developing countries focused on defending their interests in a trade relationship with the World Trade Organization and the European Union (Pounder & Wollenberg 2020).

Also, Brexit has resulted in the loss of preferential UK market access by developing countries that they enjoyed under the European Union agreements. For instance, most African countries with Kenya leading would generate much income by exporting flower products to the UK market, the largest consumer for the flowers from...

…developing countries have lost about $ 112 million in exports. It is estimated that the total cost of developing countries export will total $ 500 million until friendly trade policies are put in place. Notably, this presents a conservative estimate of the impacts of short-term trade (Pounder & Wollenberg 2020).

On the other hand, some developing countries have benefited from trade development Assistance by the UK even though trade agreements are undergoing. The British government has opted to put some transitional arrangements to cushion developing countries from the consequences of Brexit. Such arrangements include trade development assistance that can help mitigate the challenges faced by developing countries (Moradlou et al. 2020). Equally, the ongoing trade agreement talk between the UK and the developing countries should create policies that will enhance a more friendly trade relation between the developing countries and the UK (Kohnert, 2020). For instance, the policies should grant developing countries a great preference that enables them more significant value creation through multiple states, enhancing regional value chains (Perez & Olivie 2020).

Consequently, the importation of less price-sensitive products like beans and tea from developing countries like Kenya and Malawi has experienced a 20% increase post Brexit. However, there is a remarkable decline in the demand for imported goods that are more sensitive to price and income (Pounder & Wollenberg 2020). For instance, high-quality coffee and flowers from Kenya have suffered a significant hit post Brexit. Moreover, durable items like bicycles, toys, and other light manufactured goods imported by developing countries have also been affected substantially (Kohnert, 2020). As a result, countries like South Africa have experienced close to a 21% reduction in their exports to the UK, awaiting new trade…