Even though 53 percent of the British population voted to leave the European Union, it will not be easy to walk away from thousands of EU agreements in force. Some British officials on economia.estadao.com.br say it could take up to six years to complete Brexit after article 50 is signed. Article 50 is set for signing on March 29, 2017. The United Kingdom’s economy did not go into a tailspin after the Brexit vote. Former Prime Minister David Cameron resigned after the vote, and he said the British economy would hit rock bottom when the U.K. leaves the EU. Many economists at https://br.linkedin.com/in/flavio-maluf-172147b3 agreed with him, but that didn’t happen. But the inflation rate increased by 2.3 percent, the pound sterling lost 15 percent of its value against the U.S. dollar, and 10 percent against the Euro on the foreign exchange. The Gross Domestic Product output increased by 1.6 percent and the prediction for 2017 is another two percent increase.
In short, The U.K. is not in economic trouble, but the country must address the trade imbalance, and that’s what new Prime Minister Theresa May is doing. The U.K. wants to export more goods to non-European Union countries, according to Brazilian entrepreneur and exporter, Flavio Maluf. Maluf is the CEO of Eucatex, the building material manufacturer. Eucatex is one of Brazil’s leading exporters of paint, varnishes, floorboards, ceiling tiles, and other building materials. Maluf thinks the U.K. needs Brazilian products, and Brazil needs U.K. goods and services. Brazil’s booming middle class and new government need an injection of English goods, but the Brazilian tax code and other regulations must be amended before any bilateral agreement will work with the U.K., according to Maluf.
Brazil is on the verge of pulling out a recession that crippled the investment sector of the economy. But Eucatex is still doing better than most Brazilian companies. The company was founded by Flavio Maluf’s grandfather in the 1950s. Today, Eucatex ships building materials to more than 20 countries and the country has an annual revenue stream of more than a billion reals on segs.com. Maluf wants to export more to the U.K., but there are several Brexit hurdles to overcome before that happens.