Everyone had a different opinion after Britons voted to end their association with the European Union in late June. The immediate effect of the Brexit vote was a massive drop within the stock markets throughout Europe. The Sterling similarly devalued and reached its lowest value in more than twenty years. Brazilian corporate executive, Flavio Maluf is among individuals who think that the referendum will translate into long-term impacts on the world’s economy.
Mr. Maluf states that the referendum will impact Britain’s economy first. In 2014, the country contributed 11.3 billion pounds to the EU. In return, it received more than 6.9 billion pounds. This is a significant amount, which can have an inflation effect on the country. The entire union will also be faced with reduced investment. There will be no more freedom in the movement of people and goods throughout Europe, something that can bring negative results to the continent.
Maluf points out that Brazil needs to realign its global trade policy, so that it gains from the separation. It should start partnering with Britain. In the past, interactions between the two countries were limited by EU trade tariffs. At the moment, the United Kingdom is not Brazil’s major trading partner. Less than 2 percent of Brazilian products are exported to Britain. Bilateral agreements must be formed to boost trade between the two countries. This will translate into huge economic benefits for both nations.
Flavio Maluf in Brief
Mr. Maluf is one of the most prominent Brazilian businessmen. He holds a mechanical engineering degree from Armando Alvares Penteado Foundation (FAAP). This is one of the leading institutes of higher education among Portuguese speaking countries. Mr. Maluf serves as the president of Eucatex and GrandFood. These are some of the largest conglomerates in South America. Flavio is credited with helping them dominate different spheres of the Brazilian economy. Besides his role at the two firms, he has been staunch in advocating the use of technology to teach students. Mr. Maluf is also an avid columnist on major Portuguese publications. His well-researched and articulated articles address various social, political and economic issues. Flavio’s father Paulo Maluf, is one of the most vocal Brazilian politicians. Be sure to read Flavio’s personal blog.