Brexit Likely To Impact EU's Standing As Top Global Trade Power - Envoy

By Tengku Faezah Tengku Yusof KUALA LUMPUR, June 28 (Bernama) -- Britain's referendum to exit the European Union (EU), or Brexit, is likely to impact the union's standing as a top global trade power, said Head of the European Union Delegation to Malaysia, Luc Vandebon. He said the grouping, which now holds 22 per cent share of world trade, will see the number drop to between 18 and 19 per cent after the UK finalised its exit after two years. "Obviously it has an impact of economic importance and economic standing, but one should not forget that with 27-member states that we will have now in EU, we still account for about 450 million citizens who are not neglected of course. "It has damaged a little bit (of) our economic standing as such, rippled effect of this decision can be seen now when you look at the stock market, when you look at what happened to the pound (currency)," he told Bernama in a telephone interview on Monday. He said all parties should refrain from drawing hasty conclusion on Brexit's short- and long-term impact that will cause further uncertainty to the stock market and currency trading. On a personal note, Vandebon said, Brexit will also impact the wider world economy due to EU's importance within the world economy, and it was going to have a big effect to the UK itself. On the Ministry of International Trade and Industry Ministry's (MITI) statement last week saying the Malaysia-EU Free Trade Agreement (FTA) will continue post-Brexit, Vandebon said, he agreed with the remarks, adding that Brexit would not impact trade between Malaysia and the EU. "One member state leaving is not going to have a big impact on us (EU), no direct relations of Brexit to Malaysia-EU relations," he said Last Friday, MITI Secretary-General, Dr Rebecca Fatima Sta Maria, said Malaysia was keen to pursue negotiations on the Malaysia-EU FTA even after the UK leaves EU. It was reported that in 2015, the UK was Malaysia's third largest trading partner in the EU and fourth largest source of investment. As of 2015, a total of 433 manufacturing projects with UK participation had been implemented, valued at US$1.65 billion (RM6.8 billion) in terms of investment. On another note, Vandebon declined to comment on UK Prime Minister David Cameron's decision to resign following the Brexit result, saying that it was a "purely domestic political affairs." --BERNAMA