Risk averted as Scotland votes 'No'?

Economists and importers/ exporters have largely welcomed the outcome of last week’s Scottish referendum, which analysts also said reduced the risk of the United Kingdom (UK) leaving the European Union (EU). But has the relationship been tarnished and will some major businesses still act on their threats to move out of a divided Scotland? That remains to be seen say economists, who are calling for unity in focusing on trade growth moving forward. CEO of Aberdeen Asset Management, Martin Gilbert, who had previously said that Scotland “would prosper” as an independent county, also welcomed the end to the uncertainty of the last few months. “Scotland has long been a world leader in business sectors such as oil and gas, whisky and investment. The task now is to grow the rest of the economy with the strong support of politicians of all parties,” said Gilbert in a press statement. Managing director of Tax Café, Nick Braun, told FTW that the ‘No’ vote proved that many Scots know that a ‘Yes’ vote doesn’t make economic sense. “Trade with the rest of the UK is worth over two thirds of Scotland’s output. Anything that disrupts that would be bad for both economies,” he said. With Scotland remaining part of the UK, it still participates in the EU-SA Trade Development and Cooperation Agreement which allows for duty-free imports and exports between the two countries, said Braun. With the uncertainty over, the pound immediately strengthened against the rand, which makes South African exports more competitive in the UK market. According to Braun, South Africa and Scotland have close economic ties, with SA being the seventh biggest market for Scotch whisky. “Scotland imports mainly wine and fruit from South Africa,” he said. CAPTION South Africa is Scotland’s seventh largest export market for Scotch whisky.