The United Kingdom is about 4,300 miles away from the state of Florida, so you’re probably wondering why Floridians should care how Brexit impacts them. There are actually more impacts than you might anticipate, though, given the strong tourism industry in Florida.
If you want to learn more about the Brexit impact on Florida, this is the right place. Read on to learn more about how Brexit will likely impact tourism and imports and exports in the Sunshine State.
What Is the Status of Brexit?
Before we get into the specific impacts on Florida, it’s important to understand where Brexit stands. Although the vote to exit the European Union was made in 2016, after many failed and rejected plans to exit the EU, it didn’t actually happen until January of 2020.
There are currently transitional arrangements that are in place until December 31, 2020. These arrangements left most of the rules of the EU in place in the UK, including the freedom of movement for UK citizens and cross-border travel. However, once the transitional agreements end in December, those rights will end.
Each year, over 1 million visitors come to Florida from the UK. The UK has been second only to Canada in the number of visitors traveling to Florida. Visitors who come from other countries stay the longest and spend the most money.
If the value of the British pound decreases as a result of Brexit, the cost of coming to the US increases, resulting in a lower number of visitors coming to the US from the UK.
Imports and Exports
Not only will Brexit likely impact tourism, but it will also impact imports to the UK and exports from the UK. Overall, trade with the UK is about $3 billion, so when the British pound is weak, as it is expected to be once Brexit is fully realized, the goods that we export to them will be more expensive, which could limit the volume that they are willing to purchase.
American businesses, including those in the state of Florida, want to know what to expect when they are doing business with other countries. Since the impact of Brexit is unknown, companies may be reluctant to do business with UK companies.
UK businesses also employee more Floridians than any other country. If those businesses lay off employees, merge with others, or fold, it could have a significant impact on Florida citizens.
The Brexit Impact on Florida and Beyond
It’s likely that we won’t know the magnitude of the full Brexit impact on Florida and other states and countries for some time. While short-term impacts will be evident, the long term impacts on tourism, imports and exports, and business, in general, will remain unclear until the transition period ends and the free movement of UK citizens throughout Europe ends, and the immigration of other European citizens into the UK becomes more difficult.
If your business is suffering as a result of Brexit or you need business law related services, contact us at the Boyer Law Firm. We have attorneys specializing in business and board certified in international law who can review your case.