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Brexit: The Pennsylvania State University
Brexit: The Pennsylvania State University
Brexit: The Pennsylvania State University
BREXIT
EXPLORING BRITAIN’S DESIRED EXIT FROM THE EUROPEAN UNION
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.
The UK is one of 10 member states who pay The change of the system could warrant
more into the EU budget than they get out. new tariffs with trading partners. Earlier
Only France and Germany contribute more. ³ in March, the government announced a
If the UK leaves without a deal the EU would their plans for tariffs in the event of a no
be affected significantly. The April 2019- deal. Remarkably, it was announced that
December 2020 gap in EU budget is most imports would not attract a tariff.
estimated to be €16.5 billion in total. ⁴
About 30% of the food supply in the UK
Additionally, a no deal result would comes from the EU, and it is likely fresh
have major trading implications. Importing vegetables and fruits will become more
goods from the EU will get more expensive costly without a deal. ⁶ In the most
when free movement of goods ends with the extreme case food prices could increase
UK’s exit. As a member of the EU, UK firms by 10%. ⁷
don't have to pay extra duties, taxes or have
customs checks on goods travelling to or
from the EU. ⁵
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B. Soft Brexit
Currently, the UK is leaning towards Since Ireland is still a EU nation, the
an outcome where a deal is reached. backstop certainly complicates things.
The goal is that the EU allows them to The UK government estimates there
enter a transition period after the exit. are 110 million border crossings
This transition period would leave trading annually. ⁹ In 2016 €4 billion in
arrangements broadly unchanged. The UK would exports went from Northern Ireland
also leave the EU Single Market and customs to Ireland. ¹⁰ Additionally, at least
union and move to a free‐trade agreement, 30,000 people commute across the
with the EU gaining a relatively large degree border every day. ¹¹
of sovereignty about country‐specific regulation. ⁸
After the transition period the effects
As part of the agreement, the UK would also have of the backstop will be seen. The
to pay £39 billion as a financial settlement. backstop would require a single
However, that is not the major reason leading customs territory between the EU
to the deal’s rejection in parliament. and the UK. The single customs
territory would essentially keep
When the UK departs from the EU the the UK in the EU customs union.
border between Ireland and North Ireland The custom union ensures EU
will become the land border between the EU member states all charge the same
and the UK. The border is the reason the UK import duties to countries outside
and the EU have placed a “backstop” on the border. of the EU. ¹²
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revoke Article 50 and remain in the European changed their minds since 2016.
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the UK’s GDP. Without the EU’s help that was on the issue of breaking
theory is very realistic. However, the loss away from the EU. The results,
of GDP could be a temporary setback at best. were 67% for staying, whereas
The upside for complete sovereignty outweigh 33% voted against it. 41 years
potential drawbacks. Free from the EU, the UK later, the same question was asked
would be allowed to make trade deals with and the results were completely
other nations. That freedom would come to different. Although the UK has
a huge advantage for the fifth largest shared a fruitful relationship with
economy in the world. ¹⁶ the EU, it’s time for a divorce. The
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Endnotes
¹ “EU Referendum Results.” BBC News, BBC,
www.bbc.com/news/politics/eu_referendum/results.
² Wolf B., Guntram. “The implications of a no-deal Brexit: is the European Union
prepared?” January 2019. PDF file.
³ Seddon, Paul, and Brian Wheeler. “Brexit: All You Need to Know about the UK Leaving
the EU.” BBC News, BBC, 18 Apr. 2019, www.bbc.com/news/uk-politics-32810887.
⁵ The Visual Journalism team. “Brexit: 10 Ways You Could Be Affected by No-Deal.” BBC
News, BBC, 22 Mar. 2019, www.bbc.com/news/uk-politics-47470864.
⁶ Ibid.
⁷ “Brexit: Food Prices Could Rise 10%, Says Mark Carney.” BBC News, BBC, 4 Dec. 2018,
www.bbc.com/news/business-46439969.
⁹ Phillips, Tom, and Sinéad Boultwood. “Why Is Avoiding a Hard Border in Ireland a
Priority?” Full Fact, Full Fact, 17 Dec. 2018, fullfact.org/europe/avoiding-hard-border-
ireland/.
¹⁰ Reland, Joël. “Trade across the Irish Border.” Full Fact, Full Fact, 26 Feb. 2018,
fullfact.org/europe/irish-border-trade/.
¹⁵ Ibid.
¹⁶ Smith, Rob. “The World's Biggest Economies in 2018.” World Economic Forum, 18 Apr.
2018, www.weforum.org/agenda/2018/04/the-worlds-biggest-economies-in-2018/.
¹⁷ Northcott, Michael. “The Case for No-Deal Brexit.” POLITICO, POLITICO, 12 Mar. 2019,
www.politico.eu/article/the-case-for-no-deal-brexit/.
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¹⁸ Ibid.
Graphics
¹ Reuben, Anthony. “Reality Check: How Much Does the EU Budget Cost the UK?”
BBC News, BBC, 5 Apr. 2016, www.bbc.com/news/uk-politics-eu-referendum-
35943216.
2 Edgington, Tom. “Brexit: What Trade Deals Has the UK Done so Far?” BBC
News, BBC, 5 Apr. 2019, www.bbc.com/news/uk-47213842.
³ “Brexit: Food Prices and Availability.” House of Lords - Brexit: Food Prices and
Availability - European Union Committee,
publications.parliament.uk/pa/ld201719/ldselect/ldeucom/129/12904.htm.
⁴ Reland, Joël. “Trade across the Irish Border.” Full Fact, Full Fact, 26 Feb. 2018,
fullfact.org/europe/irish-border-trade/.
⁵ McGuinness, Ross. “Most UK Voters Haven't Changed Their Minds about Brexit,
Says YouGov Poll.” Yahoo! News, Yahoo!, 16 Apr. 2019, uk.news.yahoo.com/most-
uk-voters-havent-changed-their-minds-about-brexit-says-you-gov-poll-
111651367.html?guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referr
er_sig=AQAAAKzsla5kAjD99mDy4nN7JPyMX5BR56mVRgUg-
ZMq_DHK070dGZwT8kOcpynELxzU-
Tt8qtXEiEryIbaS9ZPpGqwDM8o1N7EAIRxgbbMsOdliXEB_5XdpbAeuPxbZgJHbqs
QtoNdrMD3anxOnNsqDv5bN8E6aB0LFMsEayrWVX0Ld&guccounter=2.
⁶ Smith, Rob. “The World's Biggest Economies in 2018.” World Economic Forum, 18
Apr. 2018, www.weforum.org/agenda/2018/04/the-worlds-biggest-economies-in-
2018/.
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