Challenges brought by Brexit to the United Kingdom
UK

Challenges brought by Brexit to the United Kingdom

Introduction

The United Kingdom’s constitutional system faces a slew of challenges as a result of the Brexit negotiations. The constitutionality of the UK’s notice of withdrawal (under article 50 TEU) and how it has affected the relationship between parliamentary supremacy and the exercise of prerogative powers; the contents of the EU Withdrawal Bill and its potential extension of government law-making without parliamentary scrutiny, as well as its implications for the devolved governments; and, subsequently, the sensitive issue of the border of Northern Ireland with the South.

What was Brexit?

The legal and political process through which a European Union member state ceases to be a member of the Union is known as withdrawal from the European Union. Article 50 of the treaty states that “Any Member State may decide to withdraw from the Union by its constitutional requirements”. The United Kingdom is the only precedent state as per 2020 to draw out from the European Union, this draw out is famously known as Brexit, from the European Union. The notice of the draw out began the formal negotiation between the UK and the EU.

What was the process of this eminent end?

Following a June 2016 election, the UK government invoked Article 50 to initiate the UK’s Brexit deal on 29th March of 2017, and the disengagement was slated to take place on 29th March of 2019. That after, the UK sought and received, Article 50 prolongation until 31st January of 2020. The United Kingdom’s Parliament ratified the Brexit deal on 23rd January of 2020, and the European Parliament validated it on January 29, 2020. The United Kingdom left the European Union on 31st January of 2020, at 23:00 GMT, marking an end to 47 years of membership.

What caused the Brexit?

The referendum was first proposed by the Conservative Party. The percent of pro-Brexit voters in England’s countryside were older consisting of working-class. They were alarmed about the free movement of immigrants and refugees, arguing that citizens from poorer nations were seizing jobs and benefits in the process. The European Union fees infuriated small firms as well. Others believed that exiting the EU would result in the creation of employment opportunities. Many people seem to believe the United Kingdom provides more to the Union than it receives.

The majority of those who voted to remain in the EU were from Northern Ireland, Scotland, and London. They supported free trade with the EU and stated that the vast majority of EU immigrants consisted of youth and people eager to work. The majority of people believed that leaving the Union would damage the United Kingdom’s international standing.

Trade and Corporation Agreement between the UK & the EU

This agreement is divided into three parts; the trade, the corporation, and the governance that came into effect on 1st January of 2021. It is apt to note that this agreement does not contain foreign policy and defense.

 As per the trade market, the UK is no longer a part of the single market and customs unions of the EU. Subsequently, it has a trade agreement that authorizes zero tariffs and zero quotas on goods that fulfill origin criteria. The free access between the U.K. and EU has come to an end. The European nationals already residing in the United Kingdom must ensure that they have credentials from the British government permitting them to stay.

People traveling here between the EU and the UK must have their passports to present at the border. Traveling for business has its own set of criteria. If they do operations in an EU country frequently, they may need to set up a local subsidiary. For instance, fields like Telecommunications, radio, electronic services, etc., may be taxed. By 2064, the United Kingdom will have to pay a “divorce bill” of around 34 billion pounds. This is to satisfy any remaining financial obligations incurred when the country was a member of the EU.

As per the Security, the Union law does not apply to the United Kingdom, in case of any violation the latter will show corporation with the EU for matters of criminal justice.

As per the Governance, A Joint Partnership Council was established as per the terms of the agreement to ensure that the agreement was properly applied and interpreted. This comprises dispute resolution, legal enforcement, and retaliatory policies, if necessary.

The impact of Brexit on the UK –

Brexit has already damaged the United Kingdom. The economy has stalled, and many businesses have relocated to the European Union. Here below mentioned are some effects on job creation and growth. There would also be repercussions for Ireland, London, and Scotland individually.

– The greatest consequence of Brexit is the disruption it causes to the UK’s economic growth. The majority of this is due to the ambiguity around the outcome. Brexit uncertainty has slowed the United Kingdom’s growth from 2.4 percent in 2015 to 1.6 percent in 2019. Brexit, according to the UK government, may reduce the economic growth by up to 6.7 percent within the next 15 years. It assumed current free-trade terms but limited immigration. The British pound dropped from $1.48 on Brexit day to $1.36 the next day. This benefits exporters but raises import prices. It still hasn’t recovered its pre-Brexit high.

– The younger generation in the United Kingdom suffers due to Brexit. By 2030, Germany is expecting to have a 3 million well-equipped workforce deficit. After Brexit, those jobs will be difficult to come by for British people. Businesses are having a difficult time hiring qualified candidates. One explanation is that EU-born workers fled the UK in massive numbers, with their numbers plummeting by 95% in 2017. The low-skilled and medium-skilled professions have been the hardest hit.

– Northern Ireland is still part of the United Kingdom. The Republic of Ireland, with which it shares a border, continues to be a member of the European Union. The accord eliminates the need for customs diplomatic relations between the two Irish nations. The 30-year struggle in Northern Ireland between mostly Catholic Irish nationalists and pro-British Protestants may have been revived by a customs barrier. A conclusion was derived in 1998 with the assurance of no Northern Ireland-Ireland border. About 9,300 commuters would have been compelled to travel through customs on their route to and from work and school if there had been a customs barrier.

– The United Kingdom must negotiate new trade deals with countries beyond the European Union, which has over 45 trade treaties in place with over 70 countries.

– Scotland voted to stay in allies with the European Union, staying in the EU according to the Scottish government, was the greatest option for Scotland and the United Kingdom. It had been pushing the British government to facilitate a second referendum to be conducted. To leave the United Kingdom. It had been pushing the British government to facilitate a second referendum to be conducted. To leave the United Kingdom, Scotland would have to hold an independence vote after which it would be eligible to apply for EU membership itself after that.

– Brexit has already stagnated in London, the United Kingdom’s financial capital, which saw only 1.4 percent growth in 2018 and then was nearly zero in 2019. Between 2016 and 2019, business investment fell by 11% as a result of Brexit. International businesses are less likely to choose London as an English-language entry point into the EU economy. Around 5,000 clients were relocated to Barclay’s Irish subsidiary, while 10% of clients were relocated to Goldman, JP Morgan, and Morgan Stanley. In addition, 100 bankers have been relocated to Bank of America’s Dublin department, and 400 to a broker-dealer group in Paris.

In conclusion, the Brexit vote left three choices for the UK

– Brexit without a deal is referred to as “no-deal Brexit.” Ports would be closed and aircraft would be grounded if a trade agreement was not reached. Imported food and drugs would be in short supply in no time.

– To Re-vote on Brexit, many people believe that voters were unaware of the economic consequences of Brexit. The European Court of Justice declared on10th December of 2018, that the United Kingdom could unilaterally rescind its Brexit proposal to remain in the EU.

– To approve a negotiated deal, the nature of the border between Northern Ireland in the United Kingdom and the Republic of Ireland in the European Union had been a bone of contention.

References –

– TheConstitutionalChallengesThatTheBrexitNegotiatio-6428252.pdf

– https://en.wikipedia.org/wiki/Withdrawal_from_the_European_Union#United_Kingdom

– https://en.wikipedia.org/wiki/United_Kingdom_invocation_of_Article_50_of_the_Treaty_on_European_Union