Updated: Nov 8
The process of Great Britain exiting the European Union is called Brexit. This event lasted for quite some time, being delayed several times. However, it came to an inevitable end on 31st December 2020. Brexit has made a huge impact in various fields, such as the economy, trade, and migration. This article focuses on the post-Brexit consequences that the UK has to face nowadays.
Background of Brexit
First appearance of Brexit
The idea of Brexit first appeared in 2015 in the British parliament. The Conservative Party requested a referendum. Consequently, on the 23rd of June 2016, British citizens voted to leave the EU. This is when the Brexit process started.
British Prime Minister
The first Prime Minister, Theresa May, was responsible for notifying the EU about the results of the referendum. However, a lack of Parliament’s agreement on British exit conditions postponed the withdrawal. Then, Boris Johnson succeeded May as Prime Minister in 2019. He negotiated Brexit’s conditions with the EU and got them approved by the parliament. Accordingly, the Royal Assent was received. This is the queen’s agreement of the newly voted bill as a law.
The formal happening of Brexit
As a result, the UK formally left the EU on the last day of January 2020. As a consequence, the transition period lasted until the end of December 2020. So, at the beginning of 2021, the United Kingdom was no longer part of the EU. Still, cooperation is maintained with the EU through the Trade and Cooperation Agreement.
Consequences of Brexit
Brexit impacted various areas in the United Kingdom. The consequences of it leaving the EU have two sides and can be divided into positive and negative.
Currently, the UK is less limited without the EU restrictions. To elaborate, the UK can work out its own trade agreements with non-European countries. Additionally, the British pound’s value depreciated due to Brexit. This makes investment in the UK more interesting for international market members. Moreover, British businesses can apply for an AEO status (Authorised Economic Operator). Then, operations in international market are easier.
Customs tariffs and quotas
Leaving the European single market limited the UK’s free movement in countries that are part of the EU. Therefore, customs tariffs and quotas had to be re-established. So, goods being imported and exported have to meet more conditions. Luckily, both parties agreed on the TCA, Trade and Cooperation Agreement. This allows for tariff-free trading. Also, the UK has to pay 25 billion pounds before 2057, because of commitments made while part of the EU.
Furthermore, fewer workers are coming to the UK. A work visa is now needed, which limits movement. Due to this, there are delays in the supply chain. To add, administrative marking has also changed. A new marking has been created due to Brexit. It needs to be added to all products sold in the UK. So, Brexit has limited free movement and made administration and documentation more difficult.
So, Brexit has forced the United Kingdom to adapt to a new reality. This process has taken a lot of time and still requires adaptation. People have been affected by it. Nevertheless, besides the negative effects, there are also some advantages. As time continues to pass, we will see how the United Kingdom copes with leaving the European Union.