Economic Implications Of Brexit

878 Words 4 Pages
The increasing demand of world trade has been a highly discussed topic since World War II and countries around the world are affected by this still today. With England being a part of the 28 countries in the European Union partnership, a referendum on June 23rd 2016 allowed Britain to exit from their trade agreement within the EU which is referred to today as “Brexit”. This has not only made a huge impact to some, but an impact to many who have mixed emotions about how this affects not only Britain, but the world (Kierzenkowski et. al, 2016). The negotiation has already been completed however, there is a two-year renegotiation withdrawal, even though they do not initially know how the process will work (BBC, 2016). The following essay will …show more content…
The EU partnership allowed citizens to move from one country to another allowing countries to feel as if they are one. The implications of Brexit shown by Hatzigeorgiou and Lodefalk (2016, pg. 42) was that Brexit has economic and political issues that mostly come from trading, explaining there are two categories of which will affect the EU, direct and indirect consequences. The UK loses access to the EU single market and loses fifty percent of their exports directly, and also the indirect effects have been categorised down to three main …show more content…
4) also showed other trade agreements have been of interest to the Brexit approach. The UK have considered looking at other agreements such as adopting the Norwegian model, the European Economic Area (EEA), the Swiss model the European Free Trade Association (EFTA) or relatively look outside of the EU and look at international trades. The complications of this alone cannot be determined either because of the relatively different approaches that they all have compared to the EU as the EEA has three countries non-EU countries which are; Iceland, Liechtenstein and Norway they are a part of the single market which allows them free trading of goods, services, people and capital. The EFTA adopted by the Swiss however, is not a part of the EU or the EEA therefore negotiated to participate in EU policies and programs which determine policies such as insurance, air traffic, pensions and fraud prevention, they also negotiate free trade with the EU in all non-agricultural goods. The last part is operating in the world trade and enabling the UK to initiate trade deals outside of the EU. The World Trade Organisation (WTO) however has 161 countries and each member of this must allow other members the same market access and including charging the same tariffs to members, the issues of this is that the UK will have no freedom of movement of people with the EU, no right of access to EU markets for service providers and goods exported to the

Related Documents