In 2016, the United Kingdom voted to leave the European Union, via referendum of the British people. Since then, not much progress has been made in terms of reaching a deal with the European Union based on an exit strategy.
Prime Minister Teresa May, says that she wants to keep mass immigration out of the United Kingdom, keep the United Kingdom on the right road to economic prosperity, and get a trade deal with the European Union to leave successfully. The previous British prime minister, David Cameron, representing Witney in the British Parliament, campaigned to stay in the European Union, while the United Kingdom Independence Party fought to pave the way for the United Kingdom’s rebellion.
Despite all the anxiety, British officials continue to insist that everything will be just fine after the “Brexit.”
A recent analysis on the UK-EU relationship estimates that the jobs of 3.6 million Brits are reliant on robust trade with the European Union, while 5.8 million European Union jobs depend on trade with the UK.
On the other hand, according to the Guardian, some analysts believe that it will be the European Union’s economy that will weaken.
Sajid Javid, the UK’s home secretary, is calling on businesses, public institutions and other organizations to try to work out ways to sensibly deal with the European Union. Javid stated that a no deal-Brexit policy could lead to the shrinking of the British economy. Additionally, Javid says the United Kingdom will be ready to deal with the European Union in any capacity regardless of whether there is a satisfactory Brexit arrangement.
British Prime Minister Teresa May said the UK will have a plan soon, but she suggests it wil be a “hard Brexit,” in which the UK will leave the single-market system and the customs union despite preferring to remain a European Union-style economy. Finally, she said the United Kingdom potentially could have a Singapore-style tax system on the edge of Europe.
Some of those who say the UK should not leave the EU cite a few main reasons for their stance. First, many analysts agree that “Brexit” will not solve the UK’s immigration issues facing the UK. One-third of British and non-EU citizens are not from European Union nations. Some go on to say that the migrants who have been demonized by some in the UK bring in more money to the EU than has been taken out.
Secondly, if the United Kingdom were to leave, it still would have to pay a European Union membership fee for access to the single market system. Norway isn’t part of the European Union, but because they trade with European Union members, they have to pay a fee to trade with these nations.
Thirdly, various economists are forecasting that the UK could lose anywhere from 3 to 5 million jobs.
Those scrutinizing the UK also say that protection laws potentially could change, especially in regards to health and safety in the workplace. There also remains much debate about the legitimacy of the UK’s plan, or lack of one.
The UK now is in a position in which they will have to renegotiate virtually all of their trade agreements with other European nations.
Also, new legislation aimed at the workplace, financial regulations, customs laws, and many other sticky issues will affect not just the United Kingdom, but Ireland, Germany, France, and many other European Union states.
Was it a good idea to vote on a plan that might usher in the loss of 3 to 5 million jobs?
This could be a long, nerveracking process that roils global markets, and it comes at a time when widespread U.S. tariffs already are making waves.
How long can our world economy sustain itself with several major economic powers bracing for upheaval and still others threatening to unravel decades of relative trade stability around the world?