In this article, we will discuss BREXIT (Impact on UK and EU). So, let’s get started.
Impact on the U.K. and the European Union
- By leaving the EU, the U.K. automatically, mechanically, legally, leaves hundreds of international agreements concluded by or on behalf of the EU, to the benefit of its Member States, on topics as different as trade, aviation, fisheries or civil nuclear cooperation.
- However, with just 11 months to negotiate, there are only chances of very basic and minimal deals covering trade, fisheries and security.
- In that case, at the end of 2020, differing aspirations for the trade talks might raise the prospect of a new no-deal scenario.
- In the absence of a deal, the earlier accord on citizens’ rights, money and the Irish border will remain intact.
- Both of them will have to be ready for the economic shift in trading on World Trade Organization (WTO) terms.
- The first priority is the trade deal to ensure the tariff and quota-free flow of goods between the EU and U.K.
- However, the EU will only agree to zero tariffs and zero quotas if the U.K. pledges zero dumping – that is, not lowering social and environmental standards to outcompete the EU.
- Negotiations will clash over the EU’s refusal to bring services into the trade deal.
- The EU seeks to link goods trade to maintaining the status quo on access to British waters which is considered to be a matter of concern for the U.K., so it might give rise to clashes.
- Even the non-trade subjects will be full of political troubles because the EU Member States will have to change their policies according to the new deals and the regulations.