Arkansans in D.C., leaders in state react to U.K. results

The decision to leave the European Union by the United Kingdom won't affect its relationship with the United States, members of the Arkansas congressional delegation said Friday.


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They said they support the United Kingdom's right to self-determination and respect the decision its people have made.

In Little Rock, officials said British-American ties won't be severed, but there will be economic repercussions that are hard, at this point, to predict.

Gov. Asa Hutchinson said a trade trip to England and Germany would proceed as planned.

The governor will be in Europe next month to open an office for the Arkansas Economic Development Commission in Germany and attend the Farnborough International Airshow outside of London. Aerospace is one export in which Arkansas has strength.

"In terms of the economy, I hope the immediate, negative financial response is only temporary because a strong European economy is very important for the United States and, specifically, Arkansas," Hutchinson said. "We have scores of companies that employ people in Arkansas that are employed by German, French, different EU countries. Their strength is important for the economy of our state."

Hutchinson, who was the first undersecretary for border and transportation security at the U.S. Department of Homeland Security, said the move will probably enhance Britain's security. Countries within the European Union share an open-border policy.

"From my days at Homeland Security, I think their independence from the EU will make it easier [to enhance] security in terms of terrorism," he said. "Historically, you had border checkpoints when you moved country to country in Europe."

In Washington, lawmakers issued written statements acknowledging the results of Thursday's vote.

"The United States and Great Britain share a deep friendship, and I support our crucial ally in this historic decision," said U.S. Rep. Steve Womack of Rogers.

"The British people, through the democratic process, have made their voices heard," said U.S. Sen. John Boozman of Rogers.

U.S. Rep. French Hill said he respects the decision.

"If the people feel this is in the best long-term interest of their nation, then Americans should support their desire to maintain their sovereignty," the Republican from Little Rock said. "Both the United Kingdom and the European Union are, and will remain, crucial partners of the United States."

In an interview, U.S. Rep. Rick Crawford criticized President Barack Obama for urging the Brits during an overseas visit to remain in the EU, calling the lobbying "entirely inappropriate."

The Republican from Jonesboro, whose father served in the Air Force, spent four years on an air base 80 miles northeast of London.

Crawford said he loves England and he respects the wishes of its people.

"I think that they should be entitled to their national pride and they should be entitled to their sovereignty and they should be entitled to self-governance and self-determination," he said. "I just don't necessarily believe in all this globalization and kind of trying to homogenize communities. I think there's beauty in the differences that exist from one nation to the other."

In a speech earlier in the week, U.S. Sen. Tom Cotton said it was best to "let the British people manage their own affairs." A spokesman for U.S. Rep. Bruce Westerman said the congressman respected the right of Britons to make the decision themselves.

Now that the decision has been made, Arkansas economic development officials are bracing for the consequences.

Arkansas World Trade Center CEO Dan Hendrix said Thursday's vote has created a lot of uncertainty. The center is based in Rogers and is affiliated with the University of Arkansas.

Trade negotiations will also be affected.

The European Union and the United States have been crafting agreement known as the Transatlantic Trade and Investment Partnership negotiations. Now those deals will need to be reworked to reflect an EU that will no longer include the United Kingdom.

The United Kingdom will need to work out its own agreement with the United States and its voice will not be heard in the ongoing transatlantic trade negotiations with the remaining EU nations, Hendrix said.

As for Arkansas companies, the United Kingdom's exit from the EU "potentially throws a wrench into corporate planning for years to come," Hendrix said. Arkansas does trade with the United Kingdom, but Canada and Mexico are the state's largest trading partners.

Matt King, director of market information and economics for Arkansas Farm Bureau, said uncertainty in Europe could cause investors to flock from the euro to the dollar. If the dollar's value increases, it becomes more expensive for other countries to buy products in the United States, including rice, eggs, chicken and other commodities from Arkansas.

The United States sold only $1.8 billion worth of agricultural products to the United Kingdom in 2015, according to the USDA. But shifts in currency can cause a ripple effect far beyond London.

A relatively weak dollar has allowed the United States to export more food and manufactured products, but that's changing.

"We're trying to export our products, but they're becoming more expensive overseas," King said.

A Section on 06/25/2016

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