Obama tries to limit fallout from British EU exit vote
US President Barack Obama on June 24 tried to limit the fallout from Britain's vote to leave the European Union, which threatens to harm the US economic recovery, derail his trade agenda and distract US allies from global security issues.
 |
"While the UK's relationship with the EU will change, one thing that will not change is the special relationship that exists between our two nations. That will endure," he told an event at Stanford University, referring to close ally Britain. "The EU will remain one of our indispensable partners," Obama said.
He spoke to outgoing British Prime Minister David Cameron and German Chancellor Angela Merkel after the stunning result of June 23's referendum, the biggest blow to the European project of greater unity since World War Two.
Obama said he was sure Britain's exit would be orderly and vowed that the United States and Britain would "stay focused on ensuring economic growth and financial stability."
The Brexit result rattled Wall Street and many other financial markets, with global stock markets losing about US$2 trillion in value on June 24.
The historic divorce launched by the Brexit vote could sink hopes of a massive US-EU free trade deal before Obama leaves the White House in January.
Negotiations on the Transatlantic Trade and Investment Partnership, or TTIP, were already stalled by deeply entrenched differences and growing anti-trade sentiment on both continents.
As well as the global economic consequences, Brexit makes it more difficult for Obama and the United States to corral its Western allies into joint action against challenges such as Islamic State, Russia and the rise of China.
The White House said on June 24 that he stands by a comment made then that Britain would move to the back of the queue when it comes to trade deals with the United States if it left the EU.
Obama hopes his former secretary of state Hillary Clinton will win the November election and safeguard his legacy but economic volatility in the United States after Brexit could hurt her chances of beating Trump.
In response to Britain's decision to leave, Clinton said the United States must first safeguard against any economic fallout at home at "this time of uncertainty" and underscore its commitment to both Britain and Europe.
The US Federal Reserve sought to calm global financial markets by saying it was ready to provide dollar liquidity following the British vote.
