The Effect of Brexit and the European Union on Markets in Developing Countries

Abstract

This paper explores the effects and importance of the EU to developing markets of the world. Using an exploratory method of analysis; the paper recognises that the EU was founded with the aim of establishing a ‘Common Market’ with the ‘four freedoms’ of goods, services, persons, and capital. By aiming for free movement of goods and services, it is proven in the paper that a single market goes beyond a ‘free trade area’ or ‘free trade agreement’, which is predominantly concerned with reducing—and in many cases eliminating—trade tariffs on goods between members. A single market tackles other trade costs—especially non-tariff measures such as licensing and other regulatory barriers to trade. The paper further considers the place of Britain in the EU, and establishes the fact that the EU is important as far as Britain is concerned. It confirms that the EU is the UK’s largest trading partner, comprising around half of all trade. Therefore, the impact of the BREXIT on the UK economy is not farfetched. The paper finally considers the roles of the EU in the ECOWAS by stating that the two regional unions have some common peculiarities. Some of the roles of the EU in nurturing the ECOWAS include: trade and economic structure of ECOWAS, institutional setting and policy coverage, political dialogue, development cooperation, regional integration and trade supports, etc.