Turns out the leave campaign in Britain had more voters as well as posters as British voters opted to leave the European Union, sending stock markets crashing around the world.
SACRAMENTO — The California Chamber of Commerce, like everyone else, is trying to piece together the impact of Britain’s decision to leave the European Union.
“California has a lot at stake,” Allan Zaremberg, CalChamber president and CEO said. “We are the sixth largest economy in the world and a major trading and investment state, and no one in California can be immune from dramatic changes in the international economic structure. In order to mitigate the uncertainty and instability, the exit, which requires approval by Parliament and the EU, must be orderly and consider the global consequences.”
World markets were stunned by the decision which polling had suggested would result in Britain staying in the now 27-member national union. As of 11 a.m. Friday, the Dow was down more than 500 points on the news. Other international markets were down anywhere from 5 to 12 percent.
“This will probably make America and the dollar safe havens for international investments, which unfortunately could make California exports more expensive,” said Zaremberg. “Finally, because of California’s reliance on the income tax, market volatility can put the government’s revenues at risk, and that is one more reason to have an orderly transition.”
The United Kingdom is California’s 10th largest export destination, with over $5 billion in exports in 2015. Computer and electronics products accounted for approximately 26.5 percent of exports, more than $1.3 billion.
California imports about $4.5 billion in goods from Britain with transportation and computers making up the bulk of those imports.
The UK also serves as the entry market into the European market for over 41,000 U.S. exporters. California exports to the European Union totaled $29.2 billion in 2015, making California the top exporting state to Europe. European Union countries purchase 17.6 percent of all California exports.
“The Trans-Atlantic relationship is one of the most important in the world, and the United Kingdom is one of the most valued trade and investment partners for our country and state,” said Zaremberg.
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