CANZUK is only hypothetical, but it could make or break business in a post-Brexit world. But how will it do that? And will it even do that?
CANZUK is a theoretical political bloc, focusing on free trade, foreign policy co-operation and free movement between member states.
There are many concerns surrounding CANZUK, not just from the logistics or whether it will even be effective. But that it will actually defeat one of its two main objectives: Bringing businesses in member countries’ closer together.
Some people do believe, that it will act as a wedge for expanding business opportunities and relationships, rather than being the guiding hand to bring them together. This is due to a wide variety of socio-economic and political factors.
However, for sake of simplicity, we will assume that the bloc will come together without any problem and that everything that is theorised about it, is true.
More translators, OK, I’ll get this one over with quickly. If the bloc were to be introduced as it is theorised, there will be more translators. This is because the markets of the proposed nations are very different when it comes to translators.
Countries like the UK have a high number of translators, who work in a variety of in demand languages and obscure languages. However, in Canada, the market is relatively smaller due to the fact that many people speak both English and French (the two main languages in Canada), so all translation work is done in house.
This would mean that translators in the Canadian market would be able to come over to the UK and work for large translation companies, for a higher wage!
More skilled workers, Britain is running out of qualified nurses and doctors. Australia, however, has a more nurses than ever before (with a large majority of those foreigners being British!)
One of the main principles of CANZUK, however, is to make free travel a possibilty, much like the EU does with its member countries. This would allow for many of those Australian nurses and doctors who are trying to get work, but can’t, to move to the UK, where more nurses and doctors are needed!
This would also be same for Canada, who are also in dire need of qualified nurses in particular!
Increase in the stock market, with Brexit having come and gone, the markets are shaky to say the least. However, with a union like CANZUK, the markets would see an increase in confidence.
This would see more and more investors coming into the markets in all of the member nations. This would then lead to more investors coming into the market, and so on.
This will also lead to more companies being set up, which will in turn increase economic growth, and also the stock market.
Increase interdependence, Britain and the EU rely (relied) on each other a great deal. Their economies were interlinked in many ways and the EU provided the UK with as much as the UK provided the EU.
Since the vote to leave, the vote has been heading the other way. The UK has still provided the EU with the same amount of goods, but the EU has slowly, little by little, been sending less and less to the UK.
This has lead to the UK relying more on both itself and different foreign powers. Mainly, the US, Canada and Australia. If CANZUK was to be introduced, these imports would be cheaper than they are at the moment, which would lead to their retail price being less.
This would make things such as Australian beef cheaper than it is already, and thus help both the UK and Australian economies.
No one sided immigration, CANZUK was designed so that it would be like moving to a different part of the country, even though it’s the other side of the planet!
Whilst we may see certain professions moving out of one country and to another, there won’t be a large shift from one country to another. A main concern during elections in developed nations is immigration and whether it has gone too far.
This was a major factor in the UK deciding to leave the EU and was a major problem during the previous Australian Federal Election. In CANZUK, this wouldn’t happen.
In CANZUK, we wouldn’t see a one sided shift as we saw with eastern Europeans to the UK. This is because CANZUK has certain levels of GDP that a country needs to obtain before they can join.
This would mean that they are all developed nations economically, which means that there generally won’t be a massive migration of people, from say… New Zealand, to Canada. It will be fairly evenly distributed.
Better trading power with the US, whilst the economy may be shifting away from the US, and towards China, the US is still relevant. The US has long been unhappy with the EU, due to its repeated tariff increases on American goods.
So, the US has been looking to see who it can trade with as an alternative. Until 2016, there had been no really good contenders. But then Britain entered the fray. This is someone the US could trade with.
So a CANZUK union would see an increase in relations with the US. Whilst the US probably wouldn’t join the union, it would be the unofficial fifth member. And act as the helping hand in the bloc’s times of need.
There would also be an increase in trade between the two powers. The US would provide those goods the bloc cannot produce, or not provide enough of. And the bloc will do the same in return. All in exchange for little tariffs and some political and military aid from time to time, which usually comes under the control of NATO.
Easier setting up foreign companies. The first stop of a growing nationwide company, is to expand abroad. Their goal is to get more customers in more places than just their native country.
Naturally, some companies want to save on cost. So they go to other countries who also speak their language. Normally, this is the US for other Anglophonic companies. But due to the union, it will be easier to set up shop, per se, in Australia or Canada or New Zealand.
How likely is a post-Brexit CANZUK union?
In a post-Brexit world, Britain needs as much help as it can. Not just in terms of politics and business, but everything else.
Powerful people in all four nations back the union, including the former prime minister of Australia and the prime minister of the UK.
Due to this, I would say that the union is a likely outcome, although, it must be said that many people would vehemently disagree with my statement.
Thinking CANZUK will happen? Prepare for entering the Canadian market by getting your material translated into French by professional translators!