We have all heard about Brexit, as the main referendum where the UK voted and said that they want to leave the EU or European Union. The people that live in it decided that there are numerous benefits for this particular decision keeping in mind that things will tend to change in the next ten years.
The idea is that the United Kingdom remains in a customs union with the European Union for some period. Therefore, the trade will continue as it is, and both sides will not impose additional taxes and tariffs on imports.You should check a Brexit article that will help you understand what will happen with the UK market in the next decade.
They are entirely free to tax imports from other countries, and the United Kingdom will have complete access to overall capital. That way, people that are from other countries in EU will be able to continue to work in Britain without visas.
Due to the idea that Britain will remain in customs union that will prevent a hard border between southern and Northern Ireland. Since Northern Ireland is the part it, and member of the European Union, the further problems could lead to the militarized border than happened back in 1998.
At the same time, Britain would have to pay fifty billion euro the bill for the divorce, as well as other financial commitments. This particular deal is called Jersey deal, and it would keep Britain in the single market, while it will allow them to restrict the number of immigrants.
On the other hand, the UK would have to abide by environmental, customs and social regulations of the European Union. That would avoid creating borders between the United Kingdom and Ireland.
What Will Happenin the Future?
When it comes to consequences that the UK will have due to exiting the European Union is the prohibition of the free flow of people that will come from countries of EU. However, since that was the main reason why people voted for Brexit in the first place, that will make them happy in the long run, primarily due to an increase of refugees from the Middle East and Africa.
On the other hand, the most significant disadvantage of Brexit is that it will slow the economic growth of the UK, and the outcome is something that we cannot speak of right away.
For instance, this particular referendum slowed the economic growth of 1.3% in 2018, which is the problem in the long run. According to UK’s Treasury Chief, it will slow to 1.9% in 2019 and more than 1.6% in 2020.
If you want to learn more on EU and its customs and ideas, you should click here.
The British pound fell, and it got to the lowest point that will help with exports. However, it will increase the rates for imports, so they are trying to strengthen and stabilize the pound before the deal is ratified.
Critics state that even though the pound and economy will enter the point of decline, the UK still has to follow guidelines that European Union features such as exit fees and other expenses, and since they are not part of parliament anymore, they won’t have a saying and voting strength.
Yes, that is another part that will ultimately take Britain out of the union, but that would also mean the loss of tariff-free trade status with members of the union. In case that this agreement becomes part of reality, tariffs would raise which would affect the overall costs of exports. That will make Britain less competitive and higher priced when compared with other countries within the union.
That would be devastating for the entire United Kingdom, and it will affect the financial center. Finally, England would no longer be the base for English-speaking companies that want to enter the EU economy.
According to experts, more than 5 thousand people would lose their jobs, which could also lead to real estate collapse in London and other cities too. Since many new businesses and offices are under construction, it is vital that they stay in London, because on the other side, if they decide to move elsewhere, that will affect everything.
Check this article: https://www.bbc.com/news/uk-politics-32810887 to see what will happen with Britain after Brexit.
For instance, housing prices are already starting to fall, and we can expect them to reach the lowestrate in history if the hard Brexit enters the scene. Apart from that, they will also lose state-of-the-art technologies, because of union grants to its member’s money for research, environmental protection, energy, and development.
When it comes to Britain-based companies, they will lose the ability to bid on public contracts inside the union countries. The most significant loss would be in banking especially in Londonbecause practitioners would lose the possibility to operate in all countries that are members. That will increase the cost of the internet, airfares and phone services.