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ReadersSpeak

Brexit and U.S. companies doing business abroad came Brexit. The deadline for the
U.K. to negotiate a withdrawal
ichael Salerno, director of global banking at First National Bank agreement is March 29, 2019, after
of Omaha, www.fnbo.com, sent us his views on how Brexit might which time the U.K. must leave the
affect U.S. companies doing business internationally. The follow- EU, whether or not an agreement has
M ing is excerpted, with permission, from his note: been finalized.

"As the economy recovered from the global financial crisis of 2008, many U.S. "'No-deal' Brexit would mean that
companies expanded to the United Kingdom to reach the European Union EU law would no longer apply to the
market," he wrote. "Such expansion was relatively easy thanks to a common U.K. as of March 29, 2019. This would
language and similar banking and legal systems in both countries. But then likely have wide-ranging, negative
impacts on the U.K. It would also
disrupt the global economy. Banking
and financial services would feel
the most impact, but other service-
related businesses would also be
affected. U.S. companies operating
in the U.K. and providing products
and services to other EU countries
would have to contend with two sets
of rules, regulations and possibly
tariffs.

"For companies doing business
directly with the U.K., trade
agreements are underway that could
substantially expand trade with the
U.K. U.S. companies that rely on
the U.K. as a key element in their
EU strategy, however, should be
concerned and should have plans in
place for both no-deal and negotiated
Brexit.

"If significant trade barriers are
erected between the U.K. and EU,
the U.S. could greatly benefit from
expanding trade with the U.K. This
potential windfall will ultimately
depend on the timing and details of
a possible trade agreement between
the U.S. and the U.K. In addition
to formulating their strategies for
responding to Brexit, businesses
can lobby U.S. policy makers for
favorable trade terms.

"U.S. companies doing business in
the U.K. can survive and even thrive
with the right strategies in place."

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