Impact Of Brexit On Britain And Eurozone Essays
1626 Words Nov 20th, 2016 7 Pages
European Union (EU) members are part of the custom’s treaty that ensures that there no tariffs on the movement of people or goods within member states. Nonetheless, there is a common tariff applied on goods and services entering EU. The union does not allow any member to function under independent trade policy, for instance forming trade agreement with other countries outside EU without informing the union (Miller 22). The multilateral or the bilateral trades are coordinated by an EU negotiator who is the EU Trade Commissioner. However, recently UK’s membership in the European Union (EU) has been overshadowed by some doubts as to whether it is fully committed to the union’s demands or whether one day it will quit in what would be referred to as Brexit. It is an abbreviation which stands for a British exit. It refers to the decision of the state to quit the Union, which occurred on June 23rd, 2016 via a referendum. Countries in the Eurozone gained, and equally experienced losses due to the exit and the same case happened to the UK. Britain experienced detrimental effects as a result of the decision to exit from the European Union in terms of an increased trade costs, reduced foreign investments, and loss of jobs for its citizens.
Brexit led to the UK experiencing elevated trade expenses. These were attributed to increasing in tariffs, and non-tariff barriers to trade between Britain and EU (Dhingra et al. 4). Upon exiting…