THE BREXIT DEAL

THE BREXIT DEAL

Context: Britain has now officially became the first country to leave the 28-member bloc, the European Union (EU). The United Kingdom stopped being a member of the European Union (EU) after 23:00 GMT on 31 January 2020.

BREXIT DEAL; INDIATHINKERS

ABOUT EUROPEAN UNION

The European Union is an economic and political union involving 28 European countries. It allows free trade, which means goods can move between member countries without any checks or extra charges. The EU also allows free movement of people, to live and work in whichever country they choose.

The UK joined in 1973 (when it was known as the European Economic Community) and it will be the first member state to withdraw.

It contains 7.3% of the world population and in 2017 generated a nominal gross domestic product (GDP) of around $20 trillion, constituting approximately 25% of global nominal GDP.

Additionally, all EU countries have a very high Human Development Index, according to the United Nations Development Programme

In 2012, the EU was awarded the Nobel Peace Prize.

What is Brexit and why does it happened?

BREXIT is a word that denotes two basic terms i.e., BRITAIN + EXIT. There are three basic theories that drove so many people to vote Brexit:

  • Immigrants: Faced with rising immigration locals worried about their jobs and the erosion of the English way of life wanted their government to clamp down on immigration. This was a revolt against unrestricted immigration from poorer Eastern European states, Syrian refugees residing in the EU and millions of Turks about to join the EU.
  • Elites: Faced with decades of economic malaise, stagnant real wages and economic destitution in former industrial heartlands ever since the rise of “Thaterchism” and the embrace of Neoliberal policies by Tony Blair’s New Labour the non-Londoners have decided to revolt against the elite. This isn’t just about being against the EU as it stands, and its free market and free movement of peoples.
  • Bureaucracy: Faced with Brussel’s asphyxiating amount of red tape the English people decide to “take back control” of their country’s bureaucracy.

These three theories are obviously intertwined at times and contradictory at others, that’s why it matters who is going to be negotiating the post-Brexit relationship between the UK and the EU.

What is Brexit deal?

The transition period and other aspects of the UK’s departure were agreed in a separate deal called the withdrawal agreement.

Most of that was negotiated by Theresa May’s government. But after Mr Johnson replaced her in July 2019, he removed the most controversial part – the backstop which was designed to ensure there would be no border posts or barriers between Northern Ireland and the Republic of Ireland after Brexit. If needed, it would have kept the UK in a close trading relationship with the EU.

Under Mr Johnson’s deal, a customs border will effectively be created between Northern Ireland and Great Britain. Some goods entering Northern Ireland from Great Britain will be subject to checks and will have to pay EU import taxes (known as tariffs). These would be refunded if goods remain in Northern Ireland (i.e., are not moved to the Republic of Ireland).

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