Brexit

The two terms ‘Britain’ and ‘exit’ together constitute the word “Brexit”. Brexit is the departure of the United Kingdom from the European Union, which happened at 11 p.m. Greenwich Mean Time, Jan 31, 2020. The UK is the only independent country to leave the EU. Following Brexit, EU Law and the European Court of Justice no longer have jurisdiction over British law, except in selected areas of Northern Ireland.

The European Union (withdrawal) Act of 2018 maintains relevant EU law as domestic law, which the UK can now revise or revoke. Northern Ireland continues to participate in the European Single Market, under the terms of the Brexit withdrawal agreement, in respect of goods and to become a genuine member of the EU Customs Union. 

Brexit Meaning: 

The Brexit meaning is somewhat similar to the term ‘Grexit’, which means the possibility of Greece leaving the Eurozone. Brexit means Britain is likely to withdraw from the European Union (EU). The Brexit declaration has caused a drop in the value of the pound and a decline in automotive production within the UK.

It results in the transportation of $1 billion worth of goods from the UK to other European countries by the financial service industry. However, many analysts believe that various benefits of Brexit will ultimately boost the economy in the UK. 

Withdrawal procedure of Brexit: 

Article 50 of the Treaty on the European Union, governed the withdrawal process of Brexit from the European Union. It was originally written by Lord Kerr of Kinlochard, and introduced by the Lisbon Treaty, which came into force in 2009. 

The composition states that any member state can withdraw “in agreement with its indigenous conditions” by informing the Council of Europe of its intention to do so. The notice marks the beginning of a two-year negotiation period, during which the EU must “negotiate and enter into an agreement with the [outgoing] State, to set out its withdrawal arrangements, taking into account the framework of its future relations with the European Union.”

Within two years, outstretching of agreement leads to membership ends without an agreement, unless a unanimous agreement is sticking out between all EU member states, including the withdrawal state. On the EU side, the agreement needs to be ratified by several elected members of the Council of Europe, as well as the European Parliament.

Benefits of Brexit:

 A 105-page white paper states that leaving the EU allowed the UK to seize the wonderful opportunities brought about by our freedom. It is divided into three parts: 

• Our achievements so far
• The best-controlled economy in the world
• A world of future opportunities

The various benefits of Brexit are: 

• The UK Demands Its Sovereignty:

Being part of the EU required the British nation to refrain from relinquishing its authority on certain national issues, limiting the powers of the UK parliament. As an independent country to connect with the rest of the world, Brexit will open the door for Britain.

• Immediate Relief Efforts on Immigration:

Following EU rules, there was a need for the British nations to allow foreign nationals to live and work in the UK and for Britain to do the same in other countries. This led to a dramatic increase in the number of immigrants to Britain, and the nation had no choice but to accept this rapid increase in immigration speed. The benefits of the Brexit system will allow Britain to choose the pace that best suits their country.

• Increase in Employment Level:

Another benefit of Brexit is that, due to the rapid reduction in the number of immigrants, there will be a simultaneous growth in the number of job vacancies in the country. 

• International trade:

While it is true that Britain benefited from several international agreements as a member of the EU, it is envisaged that as a sovereign state with full authority to make its own decisions, Britain will achieve great success. As all kinds of firms can participate in international trade without the regulatory responsibilities of the international governing body, the nation can move forward in this regard.

• UK Rapid Cost Reduction:

As a member of the EU, Britain, as one of the world’s major powers, played a key role in contributing to the EU budget. Nearly $8.6 billion were to be saved as a national asset, it could be used for a variety of purposes that benefit its citizens.

Brexit Consequences: 

There are a large number of Brexit consequences. 

• A study published in 2018 estimates that the economic cost of the Brexit vote was 2% of GDP or 2.5% of GDP. 
• According to a December 2017 financial report by the Financial Times, Brexit poll results have reduced British national income by 0.6% and 1.3%.  
• Trade with the EU declined sharply at the end of the Brexit revolution in January 2021, a U.K. exporter in EU countries fell by 45 percent last month and imports fell by 33 percent.
•  Brexit has led the EU to have a 13% decline in population between 1 January 2019 and 1 January 2020. 

Conclusion: 

If the United Kingdom makes a firm Brexit, it will gain more freedom to deal with trade deals and regulations. Strong Brexit is a situation in which the UK loses access to a single market and a tax union. It is observed that the restoration of sovereignty is used as a victory, even for those who have chosen to remain in the EU. For instance, under EU Law, a citizen of another EU nation may decide to move to and stay in the UK without restrictions. This has led to a dramatic increase in the number of people migrating to Britain and creating difficulties in meeting housing and service needs. With a strong Brexit, the UK will exercise full control over its borders.