Possible Scenarios with no Brexit deal agreed.
1. No Brexit deal WTO tariffs apply – UK Businesses take a hit on EU market. Other markets remain the same. Would they relocate from the UK – unlikely. New trade deals with other countries would make this relocation even less likely.
2. No Brexit deal, EU blocks all imports from the UK - UK Businesses lose their EU market. Other markets remain the same. Would they relocate from the UK – probably. New trade deals with other countries might make this relocation less likely.
In scenario 2 hopefully less likely, I would see the UK taking retaliatory action and that would put Ireland in a tricky situation. They would probably exit the EU due to sheer necessity of keeping the UK market.
Another scenario If the worst case option 2 occurs, on another front I could see EU business with the likes of BMW, Siemiens, Braun, Whirlpool probably applying political pressure to avoid losing a lucrative market. If they don’t new competitors might enter and then challenge their other markets.
There is no doubt this is a high-stake game yet remember how we got here, no proper political debates about pros and cons of globalism and freedom of movement and just vilification of anyone that disagreed with the status quo as deluded and being far right / racist or socialist / marxist. This is why the Brexit vote brought more voters out than recent elections. Undoubtedly a myriad of additional factors play into this yet they all point to a democratic deficit where people do not feel they are being listened to.
Another thing is becoming apparent to me is that the City of London interest talking about the need for a financial passport seems to be the same group that got us in the mess in 2008/2009 that decimated SMEs (decimated might be a kind way of putting it) and then via QE put billions on the national debt. They have also had their hand in PFI that is ripping off the NHS too.
Option B is illegal. The EU can't block all imports from the UK and viceversa.
In my opinion the options are
1. No Brexit deal, No transitional deal, WTO Tarriffs apply. Both parties will accuse one another for sabotaging the deal. The British companies will be banned from competing on EU contracts. Anything from spare-parts to finished products will be stuck at UK-EU ports making any form of logistics a nightmare and there will be all sorts of trade wars (fishing, farming etc).
The UK will respond to it by diverting any money generated from tariffs to help the industry who will blame everything on Brexit and threaten to leave unless the government doesn’t compensate them adequately. A trickle will become a flood with businesses lining up to get their ‘fair’ share of the cake. Meanwhile these companies will open subsidiaries in the EU to get the best of the two worlds. That means more jobs in Europe and less jobs in the UK.
The UK will be desperate to score points by signing trade deals. Corners will be cut which will probably hurt the workers (ie lack of work rights) and the so called protected industries (NHS and Farming). At that point it would be interesting how long it will take before the Brits say enough is enough. The next GE might see JC win who probably work his way back to an EEC agreement.
2. Transitional deal, WTO tariffs apply. The UK will pay its due to the EU and get a 2-3 year transitional period in return. People like Fox and co will be under intense pressure to sign trade deals which will be under heavy scrutiny by both the EU and the Labour part. Any concessions (Ex those who will hit the NHS) will be highlighted and votes will be lost
It would be interesting to see what type of trade deals the UK will be able to sign. India and Australia has already said it wont consider a trade deal with the UK unless it relax its immigration rules. The US will probably demand the UK to open its market to its chlorinated chicken, its GMOs and the privatisation of the NHS etc. The former will horrify the big chunk of xenophobics within the Brexit camp. The latter will horrify the EU who will refuse to offer any meaningful trade deal to the UK after that. There’s a chance that moderate Brexiteers + remainers will unite under JC and vote him in. Brexit will still happen but the UK will opt for an EEC membership.
In my opinion the only alternative the UK has to EU membership (or any of its derivatives) is to join NAFTA. However, considering that Trump is desperate to appease his America first voters there is a big chance that you'll end up getting a raw deal