EU officials can still trade freely with the City of London after Brexit says OECD
The international organisation, made up of members from 35 countries, said there should be no stumbling blocks to business continuing as normal after the UK’s divorce.
And it warns that if the EU shuts out Britain from its business dealings, it risks starving itself of crucial business.
The OECD said: “Erecting new barriers to financial services in the post-Brexit environment will not be in the collective interest of the global economy, where London plays such a key role in international banking, bonds and foreign exchange.”
“For OECD countries, international obligations in the form of the OECD Codes of Liberalisation should present no legal barriers to operating in the collective interest in the post-Brexit environment.”
In its annual business and finance outlook, the OECD said that it had taken the City decades to build up its financial expertise and that could not be transferred to another European destination.
It added: “Unless UK and EU financial services regimes diverge significantly after Brexit, it can arguably be expected that the United Kingdom would benefit from the sort of selective recognition arrangements provided for by the Codes.”
Many international firms chose London as their headquarters to get access to the rest of Europe
“The converse – recognition of EU financial service providers by the UK authorities as meeting UK standards – is also to be expected, even though the material significance of this may be smaller.”
Prime Minister Theresa May is set to hammer out the fine print of the UK’s exit from the EU in the coming months – if she wins the General Election on June 8.
One of the issues that keeps cropping up is its access to the EU’s single market.
Prime Minister Theresa May is set to hammer out the fine print of the UK’s exit from the EU
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There is no concrete decision as yet.
After Brexit, the UK will need to renegotiate at least 759 treaties. It's thought that the UK stands to lose much more than the EU after its exit.
There are even fears that London may not survive as a financial centre post-Brexit.
Many international firms chose London as their headquarters to get access to the rest of Europe, so, it's not known if they will change location.
London will stiff face competition from the rest of Europe which will attempt to poach business from the finance hub after Brexit.