It took two general elections, three prime ministers and just over four and a half years, but as of today Britain finally has Brexit for which it voted in June 2016.
The big picture: Britain has left Europe’s single market and customs union and is no longer governed by European legislation.
- Yes but: Northern Ireland is still part of the United Kingdom, although it is marketed as if it were part of Europe. This means that anyone transporting goods between Northern Ireland and Great Britain must first complete a customs declaration.
- An analogy: Imagine companies in Alaska being able to negotiate freely with Canada and Mexico, but needing to complete paperwork to import or export anything to the rest of the United States.
- Gibraltar, likewise, will join the Schengen Area. This means that Europeans will be able to enter and leave freely, while visitors to the UK are forced to show their passports at a border control.
The trade agreement with Europe places zero tariffs on goods. Most of Britain’s economy is in the service sector, however – which are not covered in the agreement. (UK companies only had a week to prepare for the new trade regime, which was agreed on Christmas Eve.)
- Britain exports around $ 35 billion in financial services to the EU each year and another $ 134 billion in other services, including legal, accounting, advertising, architecture, insurance, technical support and more.
- As for the UK’s trade relations with the rest of the world, 62 trade agreements have been signed – although many of the big ones, including the United States, China and India, are still in limbo.
By the numbers: The UK Budgetary Responsibility Office estimates that Brexit will leave the country about 4% poorer than if it belonged to the EU.
- This is just the economic cost. The cultural costs associated with ending the free movement of labor between Britain and the continent are less quantifiable, but possibly higher.
- Both Europe and the United Kingdom may also be less secure, now that the British police no longer have access to the Schengen Information System. Last year, they consulted Europe’s largest security database more than 1.6 million times a day.
The future of the United Kingdom is also at risk.
- Scotland wants to separate and become an independent European nation.
- northern Ireland you can vote to leave the UK and join Ireland, reuniting the island.
The other side: “For the first time since 1973, we will be an independent coastal state with full control of our waters,” said UK Prime Minister Boris Johnson, announcing the deal.
The final result: In the past 40 years, Britain has found peace and prosperity as one of the most important actors in a community of more than 400 million people. As of today, it has once again become an island off the coast of Europe.