Import and export activity is an essential aspect of optimizing economic performance. By allowing each nation to focus resources on those goods and services where it has a competitive advantage and import other products, foreign trade helps improve business conditions and quality of life around the globe.
Europe remains in flux; the fate of Brexit, kicked to parliament, and a new US president who appears to have little use for the current European order.
On June 23, the people of the United Kingdom voted to leave the European Union (EU). It was the largest voter turnout since 1992, with more than 30 million people (nearly 72%) participating. The margin was very close (about 52% to 48%), and it was unclear which side would win up to the last minute. The economic fallout of the decision will likely be decidedly negative for the UK, but also for the United States and Texas. It is much too early to know how things will unwind, the pace of the split, or what it will look like on the other side. This lack of clarity is in and of itself a problem for global markets, but an initial perspective is useful.