Brexit impact on UK-US ties will hinge on new leaders

Subject UK 'Brexit' referendum's impact on US foreign policy. Significance President Barack Obama lobbied hard for the United Kingdom to remain in the EU, citing the need for a strong and trusted US partner within the organisation. The referendum results in favour of leaving ('Brexit') are clearly a setback that could curtail long-standing US economic, political and security interests in Europe. Impacts The United Kingdom may seek to use the upcoming NATO summit to regain some international stature following the Brexit vote. Brexit will complicate UK-US as well as EU-UK data transfer arrangements. Some Republicans' pro-Brexit positions are more likely to reflect political manoeuvring against the White House than a firm policy position.

Subject The US Global Magnitsky Act. Significance Congress passed the Global Magnitsky Act as part of an annual national defence bill on December 8 and President Barack Obama is expected to sign it before the end of the year. The legislation allows the president to impose sanctions against individuals tied to official corruption and extrajudicial killings carried out in retaliation for uncovering illegal or corrupt acts. Impacts Jurisdictions in Australia, Canada, Singapore and the United Kingdom may also seek to boost real estate transparency. The White House may use its new sanctioning powers to pressure Iran and burnish its anti-Tehran credentials. The example set by Trump’s future use of the Global Magnitsky Act will be directly correlated with its chance of renewal in 2022.


Significance However, member states have the dominant foreign policy role in the EU. After Brexit, that will be France and Germany despite the United Kingdom insisting that it wants to maintain as close a relationship with the EU as possible. Impacts EU reformers will light on foreign policy as an area to drive forwarded integration. However, the EEAS lacks the competencies and institutional horsepower to be a force for integration. The strategic needs of the 27 post-Brexit EU members will be various, thus acting as a drag on integration. Smaller EU member states will see more advantage than larger ones in collectively pursuing foreign policy goals through Brussels. Larger member states will be unwilling to submit their national defence policies to greater EU authority.


Subject EU direction post-Brexit. Significance Some Europhiles believe that the United Kingdom’s departure from the EU removes a veto-wielding disruptor, thereby enabling the EU to achieve deeper political and economic integration. However, opposition to integration will remain strong, with former UK policy allies in the EU now looking to occupy the ground left by the United Kingdom. Impacts German-French hopes to create European champion firms to bolster EU competition will strengthen following Brexit. The relative weight in the EU of countries opposed to using sanctions as a foreign policy tool, such as Italy and Hungary, will now grow. Future defence and security initiatives could be established outside EU structures in order to accommodate the United Kingdom.


Subject Brexit and the UK constitution. Significance After Brexit, the United Kingdom will move from a protected constitutional system, established by EU treaties, to one dominated by the sovereignty of Parliament. Such an unprotected system is difficult to reconcile with the protection of rights and with devolution. Impacts There will likely be entrenched division over the prospect of a codified constitution and what it includes. The United Kingdom should remain in a close and strategic foreign-policy relationship with the EU. There will be pressure from free-market Conservative MPs to lower tariffs and deregulate personal and corporate tax to encourage business.


Subject Bilateral relations between the United Kingdom and the United States. Significance UK Prime Minister Theresa May has been criticised for her eagerness to form a close relationship with US President Donald Trump, at a time when the new administration in Washington is lurching from crisis to crisis. However, as the United Kingdom heads towards negotiations on leaving the EU, it needs good relations across the Atlantic more than ever. Impacts Trump’s plans to roll back financial regulations will increase pressure for similar moves in the City of London. Good UK links with Republicans in Congress will be just as important as good relations with the White House. Investigations into links between the Trump administration and the Kremlin have the potential to overshadow other bilateral relations. The tone of the relationship will also be affected by the success or failure of Trump’s state visit to the United Kingdom later this year.


Subject Prospects for US foreign policy in 2016. Significance President Barack Obama will leave office in January 2017, following the election of his successor on November 8, 2016. With most of his domestic agenda stalled in the face of a hostile Republican Congress, Obama is likely to turn to the international stage in 2016 to cement his political legacy. Meanwhile, the White House will also have to manage an array of international crises during an election year.


Significance Public statements by Foreign Secretary Dominic Raab have made clear that an ‘Indo-Pacific tilt’ -- focusing more effort and resources on the region “east from India” -- will be at the heart of that strategy. Impacts Climate change is one area where the United Kingdom, United States and the EU can significantly bolster transatlantic cooperation. Brexit provides an opportunity to reform the E3 group so as to broaden the issues it cooperates on and potentially widen its membership. The EU’s willingness to be open to looser diplomatic arrangements could be crucial in bolstering foreign policy cooperation with London.


Subject Russia, the EU and United Kingdom after Brexit. Significance Russian leaders largely refrained from commenting on the UK referendum of June 23, in which voters chose to leave the EU ('Brexit'). Before and after the vote, President Vladimir Putin and other officials voiced anger at UK politicians who cited threats from Russia as reason not to abandon the EU. The outcome is causing market uncertainty, but longer-lasting economic impacts for Russia are not yet apparent. However, a divided and weaker EU fits well with Moscow's foreign policy aims in the region, allowing it to exert bilateral pressure. Impacts EU cohesion on foreign policy is likely to decline, constraining efforts to deal with challenges south and east of the bloc. Many senior Russian officials will watch the United Kingdom closely out of anxiety for their personal assets in the country. As EU members become reluctant to expand the union, Ukraine, Georgia and Moldova will find integration slower than hoped.


Significance Prominent FCO Minister Tariq Ahmad earlier this month visited India. Meanwhile, contention over a Brexit settlement with the EU has raised the prospect of an imminent UK general election, when the ruling Conservative party will face a tough challenge from opposition parties such as Labour. Impacts Islamabad will press London to support its interests in Washington. Delhi will largely ignore London in formulating its foreign policy. An outbreak of hostilities between India and Pakistan would likely prompt tense protests involving diasporic groups in the United Kingdom.


Subject Prospects for US foreign policy to end-2019. Significance President Donald Trump will return to Washington today after a ceremonial and commemorative visit to the United Kingdom, Ireland and France this week. The visit went off largely without incident, and in that sense it was successful. However, for the remainder of 2019, the Trump administration will grapple with various foreign policy challenges after some setbacks this year. That will matter electorally, since Trump is already campaigning for 2020 and his administration's agenda frequently fuses foreign and domestic policy.


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