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What does Brexit mean? All you need to know about the UK leaving the EU.
Parul Madaan 25 Feb 2020

What does Brexit mean? All you need to know about the UK leaving the EU.

What does Brexit mean?     

British exit- refers to UK leaving the EU.


What is European Union means?

The European Union (EU) is a political and economic union that comprises 28 European countries. This allows free trade, meaning goods can travel between member countries without any checks or additional fees. The EU also enables free movement of people, wherever they choose to live and work in.

The United Kingdom joined in 1973 (when it became known as the European Economic Community) and will be the first to leave.

Why is United Kingdom leaving?

The United Kingdom (UK) officially left the EU on 31 January 2020. While it has settled on the terms of its exit from the EU, both parties still have to discuss how their future relationship will look.

This will have to be sorted out during the transition period (which some prefer to call the implementation period), which started immediately after the day of Brexit and is due to end on 31 December 2020. The UK will continue to follow all of the EU's regulations during this 11-month period and its trade relationship will remain the same.

The transition period is meant to give some breathing space to both sides while negotiating a new free trade agreement. This is important because at the end of the transition, Britain will be leaving the Single Market and Customs Union. A free trade agreement would allow goods to travel around the EU with no checks or additional fees. If a new one cannot be negotiated in time, then the UK will face the prospect of having trade with no deal in place. That would mean tariffs (taxes) on UK goods travelling to the EU and other trade barriers.

 

What is the Brexit deal?

Apart from trade, many other aspects of the future relationship between the UK and the EU will need to be discussed as well. For example:

§  Law enforcement, data sharing and security

§  Aviation standards and safety

§  Access to fishing waters

§  Supplies of electricity and gas

§  Licensing and regulation of medicines

 

Prime Minister Boris Johnson maintains that the transition period will not be prolonged, but the European Commission has warned that the timeline would prove to be extremely difficult.

The transition period and other aspects of UK leaving were decided upon in an agreement called the withdrawal agreement. Most of that has been decided by the Government of Theresa May. Yet he made some changes to it after Mr Johnson replaced her in July 2019.

The key change is that a customs border between Northern Ireland and Great Britain will be effectively created under Mr Johnson's proposal. Some goods from Great Britain which enter Northern Ireland will be subject to checks and will have to pay EU import taxes (called tariffs). When goods stay in Northern Ireland (i.e. are not transported to the Republic of Ireland), these would be refunded.

Conclusion

Brexit gives the United Kingdom’s economy the golden opportunity to revive on the back of a re-balancing away from the EU and export its way round the world. This means the United Kingdom will be able to take advantage of the grand horizons to broaden its export markets while developing new supply chains and production networks, particularly within the Commonwealth context.

Post-Brexit, in an increasingly unpredictable and turbulent world, the UK can be a regional and Commonwealth member as well as a powerful and loyal partner of the EU.

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