It took two general elections, three prime ministers and just over 4 1/2 years, but as of today, Britain finally has the Brexit they voted for in June 2016.
The whole picture: Britain has left Europe’s internal market and customs union and is no longer governed by European law.
- Yes, but: Northern Ireland is still part of the United Kingdom, while trading as if it were part of Europe. This means that anyone transporting goods between Northern Ireland and the United Kingdom must first complete a customs declaration.
- An analogy: Imagine that businesses in Alaska can trade freely with Canada and Mexico, but have to fill out paperwork to import or export something to the rest of the US.
- Gibraltar, too, will join the Schengen area. This means that Europeans can travel in and out freely, while visitors from the UK are forced to show their passports at a border control.
The trade agreement with Europe set zero tariffs on goods. However, most of Britain’s economy is in the services sector – which is not covered by the agreement at all. (The British companies only had one week to prepare for the new trade regime agreed on Christmas Eve.)
- Britain annually exports about $ 35 billion in financial services to the EU, 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 major ones, including the US, China and India, are still struggling.
By the numbers: The UK Office for Budgetary Responsibility estimates that Brexit will leave the country about 4% poorer than it would have been as part of the EU.
- It’s just the economic cost. The cultural costs associated with the end of the free movement of labor between Britain and the mainland are less quantifiable, but probably greater.
- Both Europe and the United Kingdom may also be less secure now that British police no longer have access to the Schengen Information System. Last year, they queryed Europe’s largest security database more than 1.6 million times a day.
The future of the United Kingdom is also now in danger.
- Scotland wants to secede and become an independent European nation.
- Northern Ireland may vote to leave the UK and join Ireland and reunite the island.
The other side: “For the first time since 1973, we will be an independent coastal state with full control over our waters,” said British Prime Minister Boris Johnson.
The conclusion: For the past forty years, Britain has found peace and prosperity as one of the most important players in a community of more than 400 million people. Today it has once again become an island off the coast of Europe.