With the beginning of 2020, BREXIT has been a trending discussion around the world. And why not! Brexit led to major economic changes including shifted trade deals, labour contracts and rising tensions among European countries.
But, how did that happen and how does it really affect the global arrangements. Let’s understand the same from beginning.
Brexit stands for ‘British Exit’. It refers to UK’s decision of leaving the European Union. A public vote was held in June 2016, where 52% of voters opted to ‘Leave’ and 48% chose ‘Remain’.
The European Union (EU) is a political and economic union that includes 28 countries from within Europe. Under the EU, it allows free trade of goods and movement of people among member countries for working and living. UK joined the EU in 1973 and they are the first member to withdraw from the same.
Britain has been debating about the assets and liabilities of EU membership from the moment this idea was conceived.
In 2013, UK Prime Minister, David Cameron, highlighted a national referendum on European Union membership to settle the idea of BREXIT once and for all.
PM Cameron offered options to the member with a broad and vague idea of ‘Remain or Leave’ where he was convinced that Remain would win maximum hands.
However, as Britons went to polls on 23 June 2016, ‘Leave’ campaign was hit with accusation that it relied on lies by breaking election laws. In the end, withdrawal from the bloc was supported by 52% votes.
United Kingdom gave a formal notice to quit the European Union in 2017 under Article 50 of EU’s Lisbon Treaty, that includes a legal process towards two-year path to departure.
At the culmination of this process, 29 March 2019, as decided as a formal ‘divorce’ date. However, the date was then delayed on several withdrawal deals that were thought as a ‘trap’ to keep UK in the EU.
The departure was then finalised on 31 January 2020, marking it as a symbolic milestone of a new beginning for European Union and the United Kingdom.
After saying a final goodbye to the EU, customs border will now be effectively created between Northern Ireland and Great Britain.
Since Northern Ireland is still part of Great Britain, some of the goods entering Northern Ireland from Great Britain will be subject to further checks and tariffs to be paid to EU under import taxes.
The tariffs are subject to refund if goods remain in Northern Island and do not move to the Republic of Ireland.
The customs arrangement will allow UK to negotiate trade deals among other countries who are members of the EU. However, some of the withdrawal agreement is still unchanged.
This includes the right of EU citizens in UK and UK citizens in the EU.
Mr Johnson, however, wishes to break from labour, product and environment safety from European standards which are still under negotiation.
However, EU members have warned that if Britain will increase space between its rules and Europe, it might hamper the access of Britain to the European market which includes British jobs as well.
The transition period will allow further changes to the BREXIT agreement without disturbing the economic growth of Britain as well as other European countries. Hopefully.