The world's biggest 76 national economies are matched by 110 multinational private conglomerates of the same size. In addition, 1 billion plus Chinese, 500 million plus European Union and 300 plus U S population produce 50% of world GDP.
Their market share and the dominance of the U S Dollar and the Euro currencies in world trade, are here to stay.
Britain exported £508b and imported £582b worth of goods and services in 2015. In 2011, 23% of exports included input that was previously imported. Also about half of what is exported from Britain is not final goods, but products and services that are further processed in another country.
Britain's share of world trade in 2013-14 was only 2.4%. So the loss of business in the EU could be more than offset by gain in the rest of the world post Brexit.
Both the EU and Britain, as an individual member, would have to renegotiate their trade and tariff treaties with the remaining 162 WTO members once we leave EU.
However, regardless of this, Britain should get cracking on accelerating trade, FDI, exchange of technical knowhow and services with non-EU countries from now. This would help them eventually in striking more favourable trade and tariff agreements worldwide.
Nagindas Khajuria
By email
