As the United Kingdom navigates its uncertain future after leaving the European Union, a complex web of consequences is unfolding in various sectors.
The Trade Divide
The UK’s goods trade has been negatively affected by Brexit due to non-tariff barriers such as ‘complex paperwork’.
Some studies suggest that UK goods exports are 30% lower than they would have been if the country had not left the EU single market and customs union.
However, there is some disagreement about the extent of the negative impact.
Immigration: A New Era for EU and Non-EU Citizens
Freedom of movement is a fundamental human right, recognized by the Universal Declaration of Human Rights (UDHR) in 1948.
It allows individuals to move freely within their own country and travel abroad without restrictions.
According to the International Organization for Migration (IOM), over 270 million people live outside their countries of birth, with many more moving internationally each year.
The right to freedom of movement is essential for economic development, cultural exchange, and personal growth.
There has been a significant decrease in EU immigration since the referendum, particularly due to the end of ‘freedom of movement‘.
Non-EU immigration has increased, driven by work visas (especially in health and care) and international students and their dependents.
The post-Brexit immigration system requires both EU and non-EU citizens to obtain a work visa to work in the UK.
The European Union's (EU) immigration policies are governed by the free movement of persons principle, which allows EU citizens to live and work in any member state.
However, non-EU nationals must obtain a visa or residence permit to enter the EU.
In 2020, there were over 12 million non-EU nationals living in the EU, with the majority coming from countries such as Morocco, Albania, and Nigeria.
The EU's Schengen Area has implemented strict border controls and security measures to combat irregular migration.
Travel: The End of Freedom of Movement
Freedom of movement ended with Brexit, affecting tourists and business travelers.
British passport holders can no longer use ‘EU/EEA/CH’ lanes at EU border crossing points.
However, people can still visit the EU as a tourist for 90 days without requiring a visa, provided they have at least three months remaining on their passports.
Laws: A New Era of Regulation
The UK incorporated thousands of EU laws into its own law after Brexit to minimize disruption.
Only 600 EU laws will be axed by the end of 2023, with another 500 financial services laws set to disappear later.
Most of these laws were relatively obscure or had been superseded.
Money: The Cost of Leaving the EU
The UK’s gross public sector contribution to the EU Budget in 2019-20 was £18.3 billion, equivalent to around £352 million per week.
However, this amount was partially recycled back to the UK via payments to British farmers and other development grants.
Since Brexit, the UK has replaced these payments with taxpayer funds.
The Uncertainty Remains
The article concludes that there are still many unknowns about the impact of Brexit on various areas, including territorial fishing rights, farming, and defense.
The topic is likely to remain a subject of debate and analysis for years to come.
The Brexit referendum in 2016 led to a significant increase in economic uncertainty for the United Kingdom.
The outcome of the vote created a 1-year average sterling volatility rate of 11.3%, compared to 2.5% before the referendum.
This uncertainty has resulted in reduced business investment, lower consumer spending, and decreased economic growth.
According to a study by the Centre for Economic Performance, Brexit uncertainty has cost the UK economy £430 billion between 2016 and 2020.
Possible follow-up questions or investigations could include:
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What specific sectors have been most affected by Brexit in terms of trade?
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How has Brexit impacted the UK’s scientific research capabilities through its participation in the Horizon scheme?
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What are the implications of the new post-Brexit immigration system on the labor market and social services?
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How will the introduction of a new electronic Entry Exit System (EES) affect border queues and travel times for UK citizens?
