Regional Economic Integration
Regional economic integration alludes to understandings between nations in a geographic locale to lessen tariff and non-tariff obstructions to the free progression of merchandise, services, and components of production between one another. It is tremendously looked for objective worldwide, and some of its advantages are: It drives higher specialization and production in the region. Also, consumers find it advantageous as an increase in production prompts falls in the costs of products and enterprises; therefore, the welfare of community increases. Integration prompts fall in taxes, and non-levies boundaries and expenses of production fall considerably. Lastly, economic integration encourages genial political connections. In this way, political clashes get diminished through financial reconciliation. Nations get subject to one another, so they try to avoid contentions.
Though economic integration prompts various advantages, still, few economic integrations are contentious. Brexit is such a case of disintegrating economic integrations. The reasons behind this are: Economic divergence between member nations additionally makes economic integration delicate. Few nations have the upper hand at the expense of other less-developed nations. In this manner, the UK, which was not finding economic integration gainful, moved away from it. Furthermore, unnecessary economic coordination challenges the sovereignty of the nation.
An article in the New York Times talks of how Brexit opens a new trade era. Though the decision by the UK to leave the region (European Union) shock the globe, it also portrays a new era in which national interests take supremacy over aggregate worries, with trading arrangements haggled among individual nations. With an agreement arrived at by the Allies after World War II of them trading with each other, Britain’s departure from the European Union is the most visible appearance that this thought never again holds definitive influence.
Britain’s move is also seen in the US, as the Trump administration as the cut ties with The Trans-Pacific Partnership (Goodman, 2019). President Trump has been on record accusing nations who export more to the US, but import less than more trade tariffs will be imposed. This has been the case with China, but a deal seems to have been struck to reduce trade tensions between the two economic giants. I agree with the author that although Brexit is a backward move towards economic integration, the nation should put its interests first.