Brexit: one month later
February 28, 2020
It is never too late for a change, even after 47 years.
On Friday, January 31, 2020, the United Kingdom left the European Union (infamously called Brexit, a play on words for Britain exiting the European Union), a controversial subject that has been talked aboutsince the official withdrawalprocess was placed into action on Wednesday, March 29, 2017. The European Union (EU) is a political and economic union consisting of 27 states that are mainly located in Europe. This union is formed for the purpose to combat discrimination, promote inclusion, encouragetechnological and scientificadvancements and break down barriers that exist among trade according to the EuropeanUnion’s official website.
After this decision was made, there were many parts of this operation to consider. According to thebalance.com, a financial advisor website,the UK leaving the Union will directly impact the projected labor shortage of three million workers in Germany because the UK will not be as available for the jobs that need to befilled after Brexit. NorthernIreland will still remain with the UK, while the Republic of Ireland will remain with the EU, causing confusion as to how customs would operate for the commuters who go to school and work in one or the other due to the fact that the UK is not longer in the EU.
The question that keeps reoccurring and is one of the more talked about operations that willbe affected by Brexit is trade.
“We are naturally disappointed that the promise of frictionless trade has been replaced with a promise that trade will be as seamless as possible,” UK Policy Director of Freight Transport Association Elizabeth de Jong said.
Although, the UK’s Prime Minister Boris Johnson made it clear that the changes Brexit presents for trade has already been considered. According to the political declaration signed last fall with the European Union, there will be a “free trade area, combining deep regulatory and customs cooperation, underpinned by provisions ensuring a levelplaying field for open and faircompetition.” Without trade from the other countries in the Union, though the overall food selection available for residents of the UK will decrease as much as 30 percent.
Brexit could also potentially affect the United States. Since the UK is still trying to figure out their trade agreements with other countries, products out of British ports is becoming more expensive. On the day of Brexit, the value of the United States dollar increased, therefore making stocks more expensive, which is bad for the stock market due to the lack of foreign investors who are interested in high stocks.
“If there is a no-deal Brexit, the pound is going to declinesignificantly in value,” JacobKirkegaard said, a worker for the Peterson Institute for International Economics in an interview for NBC. “If you’re an American producer selling to the UK, you all of a sudden face a barrier.”
In hopes of a smooth transition for the UK and their residents, the uncertainty around Brexit continues to rise.
