The process of Great Britain exiting the European Union, so-called “Brexit” was an event that had lasted for quite a long time. Being delayed a few times, it had managed to come to an inevitable end on 31st December 2020. Brexit has made a huge impact in various fields, such as economy, trade, migration of people in both United Kingdom and in the European Union and its Member States. This article focuses on the post-Brexit consequences that UK has to face nowadays.
Brexit idea appeared first in 2015 in the British Parliament, when the Conservative Party requested for a referendum. The referendum was conducted later, in 2016. On 23rd June that year, British citizens voted for leaving the EU. On that moment, the process of UK leaving the EU started. At the beginning, the process was led by back-then British Prime Minister Theresa May. She was responsible for notifying the EU about the result of the referendum that had taken place. Due to the lack of Parliament’s agreement on the British exit conditions that were negotiated by Minister May, the withdrawal had to be postponed. The achievement of Parliament’s approval wasn’t successful until 2019, when Minister May was succeeded by current Prime Minister, Boris Johnson. Having the majority of votes in the Parliament allowed him to negotiate Brexit’s conditions with EU and get them approved by the Parliament. The next step was to receive the Royal Assent, which is a Queen’s agreement on introducing the newly voted bill as a law. As a result, the UK had formally left the EU on the last day of January 2020, entering the transition period, which had lasted until the very end of December 2020. With the beginning of 2021, United Kingdom is no longer part of the EU. Although, the former Member State had decided to keep the cooperation with the EU by signing the Trade and Cooperation Agreement.
Consequences: fields affected
Brexit had impacted various areas in the United Kingdom. The consequences of it leaving the EU have two sides and can be divided on positive and negative.
Beginning with the positive aspects, it is being said that the UK is less limited without the EU restrictions. Although it left the single european market and the free movement within the EU’s external frontiers doesn’t apply to the UK anymore, now it has the freedom in terms of working out its own trade agreements with non-european countries. Another advantage is that Brexit resulted in british pound value’s depreciation. This means that british products have lower prices and thus may be more interesting for international market’s members. Additionally, british businesses can apply for an AEO status (Authorised Economic Operator). This makes the businesses being treated as trusted, which allows them for much easier operation on the international market. Business that wants to apply for such status has to meet certain criteria first. Although it is not easy, it is for sure worth.
The United Kingdom had to be aware of the negative consequences of leaving the European Union. One of them is the aforementioned leaving the European single market, which resulted in not being granted with free movement. While being a part of the EU, UK was a part of a customs union and was also a member of a single market. Leaving the EU was equal with leaving the customs union and single market, causing the customs tariffs and quotas to be reestablished. This means that from now on, goods from the UK that are being either exported or imported, have to meet certain conditions. Luckily, both parts agreed on so-called TCA – Trade and Cooperation Agreement, allowing for a tariff-free trading to be continued. Before 2057, the UK has to pay 25 billion pounds to cover its yet-unpaid commitments made while being one of the EU’s Member States. One of other significant changes is a decrease in number of workers coming to the UK. In order to work in the UK now, a working visa will be needed. Businesses in the UK may experience this change, keeping in mind that workforce coming from European countries was usually cheaper. Some of the British businesses can be struggling with keeping their supply chains. The reasons for this may be the delays in deliveries and COVID-19 pandemic, which slows everything down. Together with the need to do changes with administrative marking (marking is used by manufacturers and importers to confirm the matching with European standards regarding health, safety and environmental protection standards; until now, there was only one marking used – CE; after Brexit, there is going to be, introduced step by step, a new marking – UKCA, which is needed for the products that will be sold in the UK), all the disadvantages resulting from Brexit seem to be tough to overcome. Finally, UK’s citizens, in order to travel to one of the EU’s Member States will need passport. As long as the UK was a part of the EU, there was no need have the EU internal borders control. With Brexit becoming a reality, free movement doesn’t apply to the United Kingdom and visas are necessary to cross the border.
The United Kingdom, due to the Brexit has to adapt to the new reality. For sure this process will take a lot of time and be tough for all the affected people. Nevertheless, besides some negative effects of this event, there are also a few advantages, of which the use can be made. Some time has to pass to see how the United Kingdom coped with leaving the European Union.
What Was Brexit, and How Did It Impact the UK, EU, and the US? (thebalance.com)
Impact of Brexit on UK Businesses: Positive & Negative Effects (mscnotaries.com)