It took two general elections, three prime ministers and a little over 4 and a half years, but as of today the UK finally has the Brexit it voted for in June 2016.
The whole picture: The United Kingdom has left the single market and customs union of Europe and is no longer governed by European law.
- Yes but: Northern Ireland is still part of the UK, while trading as if it were part of Europe. This means that anyone transporting goods between Northern Ireland and the United Kingdom must first complete a customs declaration.
- An analogy: Imagine that companies in Alaska can trade freely with Canada and Mexico, but that they have to complete documents to import or export anything in the rest of the US.
- gibraltarsimilarly, it will join the Schengen Area. This means that Europeans will be able to travel freely abroad as well, while visitors from the UK are required to show their passports at a border check.
Trade agreement with Europe put zero tariffs on goods. However, most of the UK economy is in the services sector – which is not covered at all in the agreement. (UK businesses had only one week to prepare for the new trade deal, which was agreed on Christmas Eve.)
- The UK exports about $ 35 billion in financial services to the EU each year and another $ 134 billion in other services, including legal, accounting, advertising, architecture, insurance, technical assistance and more.
- In terms of Britain’s trade relations with the rest of the world, 62 trade agreements have been signed – although many of the major ones, including the US, China and India, are still in jeopardy.
By numbers: The UK’s Budget Accountability Office estimates that Brexit will leave the country about 4% poorer than it would have been as part of the EU.
- This is just the economic cost. The cultural costs associated with the end of free movement of labor between the UK and the mainland are less quantifiable, but probably higher.
- Both Europe and the United Kingdom may also be less secure, now that British police no longer have access to the Schengen information system. Last year, they requested the largest security database in Europe more than 1.6 million times a day.
The future of the United Kingdom it is also now in danger.
- Scotland it wants to separate and become an independent European nation.
- Nothern Ireland he could vote to leave Britain and join Ireland, reuniting the island.
The other side: “For the first time since 1973, we will be an independent coastal state with full control of our waters,” said British Prime Minister Boris Johnson, announcing the agreement.
Bottom line: For the past 40 years, Britain has found peace and prosperity as one of the most important actors in a community of over 400 million people. As of today, it has once again become an island off the coast of Europe.