Trading in sterling for a transitional period would mean goods from Scotland will avoid currency exchange issues. If the UK doesn’t sort its borders with the EU, the resulting fall in the value of sterling will mean that trade with the rest of the UK increases, not decreases.
There were a number of mistakes made in negotiating a Brexit arrangement.
This was imposed on Scotland against its will. It has turned out to be a disaster for key industries.
1. Ignoring the wishes of Scotland and the other devolved nations
Scottish independence is a constitutional project, not an economic one. Fixing who governs you takes precedence over an easy life for supermarkets or civil servants.
There may be significant economic costs resulting from independence. However, there is no reason Scotland cannot prosper as other small nations have. This report looks at the cumulative effect over 15 years.
An independent Scotland within the EU would be part of the EU’s single market: England and Wales would be outside. The border checks may be quite significant. Ireland's experience shows it is clearly possible for a small country to succeed economically in a similar situation to that which would
There are indications that the EU would welcome an application from an independent Scotland. Full membership of the EU may take up to a decade to complete.
How a border will be handled and its potential economic impacts need some serious analysis from the Scottish Government. The fact that Scotland’s trade with rUK is three times that with the EU means it looks like the short- term economic impact of a harder border would be negative.
In the early stages of independence an interim agreement will be needed. With full independence achieved, a border of some sort between rUK and Scotland will be needed.
This is the three times a year report on the Scottish economy in an international context.