UK and EU Announce Post Brexit Deal.edited

docx

School

National University of Modern Language, Islamabad *

*We aren’t endorsed by this school

Course

205

Subject

Economics

Date

Nov 24, 2024

Type

docx

Pages

Uploaded by zartashiyah

Running head: UK AND EU ANNOUNCE POST BREXIT TRADE DEAL 1 UK and EU Announce Post Brexit Trade Deal By: ABC Dated

UK AND EU ANNOUNCE POST-BREXIT TRADE DEAL 2 UK and EU Announce Post Brexit Trade Deal Introduction The negotiations f trade between European Union and the United Kingdom took place after the Brexit deal between both EU and UK. This negotiation aimed to make a trade deal that can make the trade an easy process even without such a deal. This deal would cover all tariff as well as non-tariff barriers for making a trade. The free trade deal can encourage to make a trade- in different goods as well as sometimes services. This can be done by making such trade deals that may not include any types of taxes, tariffs, and quotas as quotas can restrict the numbers of items to be traded. Such types of rules and regulations can make trade easy and extensive. On the other hand, it is also a fact that cheap imports may prove dangerous for local businesses and the job market as well[ CITATION Lan20 \l 1033 ]. It is necessary for the United Kingdom as well as European Union to decide their trade relationship for the future. Both economies are important for each other in the context of trade and especially for the United Kingdom, European Union market is the largest, and due to Brexit, both remained closest trading partners. The shutting down of the trade agreement on the Eve Christmas last year would play havoc with the economy of British that already overwhelmed with the shortages of supply. This would also enact costs on the business of Europeans that keep clients in the United Kingdom. The agreed trade deal might prevent the tariffs and quotas that usually make trade expensive. However, things are not the same as before the Brexit as now it is not necessary to follow European Union standardized products rules as businesses now have to adopt new rules. However, the end of Brexit makes trade a lengthy and time taking process and the reason behind

UK AND EU ANNOUNCE POST-BREXIT TRADE DEAL 3 it is the extensive paperwork that is required. Furthermore, the European Union has a very strict policy over animal products due to which it would not remain possible for the United Kingdom to trade these products in the EU. The importance of trade relationships makes it necessary for both to stay close to each other's so that they can share some rules and regulations for examples rules associated with environmental protection as well a labor right. No-deal Brexit Implications On 31 st December 2020, the Brexit deal between the United Kingdom and European Union came to an end that became the reason for the "no-deal Brexit" risk. The United Kingdom left European Union when it started Brexit. However, it was a very critical deal for both due to which it took approximately eleven months for negotiation to set up a new deal or extend partnership for the future. When no deal is made by the given deadline, then both have to move to a no-Brexit deal due to which the trading relationship between UK and EU will be managed by trading rules of the World Trade Organization (WTO) and this sudden switch increases tariffs and quotas that ultimately increase the products' costs and process complicated. This situation also influenced the economy of the UK by reducing its Gross Domestic Products by 8.1% that was a huge number after 10 years[ CITATION Tim20 \l 1033 ]. On 24 December 2020, European Union and the United Kingdom stuck in a provisional free trade agreement that should have the ability to make sure that both can trade without quotas and tariffs. However, the major details associated with future relationship remain uncertain just like in service trade that make approximately 80% of the United Kingdom trade. This prevented the no-deal Brexit that would damage significantly the economy of the United Kingdom. The United Kingdom Parliament approved the provisional agreement dated January. 1, 2021. On

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

UK AND EU ANNOUNCE POST-BREXIT TRADE DEAL 4 dated April 28, 2021, it was also approved by the European Parliament. This trade deal was known as Trade and Cooperation Agreement (TCA) that permit trade without tariffs and quotas on goods. However, the trade between the United Kingdom and European Union still faces the issue of custom checks that indicates that commerce is now not smooth as compared to the time when the United Kingdom was a member of the European Union. If there is no Brexit, then it might possible that the United Kingdom may end the year without having any trade relationship with European Union. However, this does not mean that they may not make any relationship of trade with it. They must have a trade deal as it is the trade deal that can give ultimate advantages to both. There also exist some researchers who are not in the favor of trade deals and consider it just like a hurdle. Regardless of the decisions about the trade deal, there are a lot of things that may change due to not having may trade deal[ CITATION Ell20 \l 1033 ]. Just for example, due to having no trade, the United Kingdom has to follow a new immigration system based on points that are lengthy process and people have to wait long to work in Europe. Banks and investors have predicted long about the trade deal that has been done. So, having no deal would hit British Pound as per foreign exchange traders. British may lose zero quota and tariffs if has no trade deal. So, non-tariffs can hinder trade with the expectation that prices may rise widely for British businesses and customers. The impact of having no trade deal also influences the auto industry that sharply fell in both the European Union and the United Kingdom. The long-term impacts of having no trade deal could be costly for 27 European Union remaining members and Britain. T can wipe out 2% extra output of the British economy in 2021

UK AND EU ANNOUNCE POST-BREXIT TRADE DEAL 5 that further drive-up unemployment, inflation, and public borrowing. The UK has to wait for a different queue if just six months are left in their passport expiration. They may also have to face restrictions on tobacco and alcohol in the UK from the EU if no extra duty is imposed. The UK- based companies may not remain more automatic for the UK until, by 2020, they live in the EU. The border check for UK companies may also increase along with licenses, custom declaration as well as special labeling[ CITATION Fau20 \l 1033 ]. Importance of trade deal By analyzing the overall impact to leave the European Union, it is now clear that having no trade agreement is rather a difficult assumption about trade, immigration, policies, and regulations that might be adopted. Open Europe think tanks explain that Brexit can make the economy smaller or larger depending upon difficult decisions. For the UK, trade is much important as it exports a total of 28% of its exports and approximately 3 million jobs were supported by the EU. The European Union is an important as well as a single market for the United Kingdom and the elimination of tariffs and such other barriers of trade facilitate the United Kingdom to easily sell their things in European Union. On the other hand, the European Union also makes some sort of arrangement with some other countries to either eliminate or reduce trade barriers. For both European United as well as the United Kingdom, trade is very important that can be justified by the argument that Britain contributed as the third-largest amount of foreign investment. The cost estimate of Open Europe, it is necessary for the United Kingdom to meet about 100 regulations associated with the European Union that make a total of about £33bn of just a single year[ CITATION The20 \l 1033 ].

UK AND EU ANNOUNCE POST-BREXIT TRADE DEAL 6 Impacts of Hard Brexit on companies The United Kingdom left the trading block officially in January 2020, however, for about eleven months, it enjoyed its status as the European Union that was the period of negotiation to approach a deal for the future. However, this period to make negotiation remain failed as no deal can be made or no role was identified. This is a critical point that should be considered wisely and most of the countries want to avoid this situation. A few days before hard Brexit that was the time to exit without making any agreement, a new deal announcement was made that showed both the United Kingdom and European Union declared victory. As per the new agreement, both United Kingdom, as well as European Union, can keep the access to market free. However, by exit Brexit al has to follow extensive paperwork even in the customs department as well. Furthermore, in addition, they also have to follow some new limits even on fishing rights. Perhaps, no blueprint for Brexit may be available and both UK and EU indicate a willingness for the resolution of disputes of future. There may exist many countries that are happy with the new deal for the elimination of uncertainty Post-trade deal and fiscal and monetary, or trade policy of UK The Governor of the Bank of England give a warning recently that the failure of a trade deal between both the United Kingdom and the European Union has a lot of influence on the British economy. Furthermore, Covid-19 already moved the economy toward recession. The no- Deal Brexit serves just like the economic shock that reduces the GDP of the economy and also gives influence to fiscal as well as monetary policy of UK as this reduce the GDP by several points. The economic situation is also uncertain due to Covid-19. However, policymakers can take many fiscal and monetary stimuli to bring stability in output. In case if the expectations

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

UK AND EU ANNOUNCE POST-BREXIT TRADE DEAL 7 associated with inflation as well as labor cost are anchored then it is the fiscal as well a monetary policy that can bring the inflation to its medium level. Conclusion It can be concluded that trade deal is fruitful for both the United Kingdom and European Union as it makes trade and its process easy and smooth as this trade deal also has a low entry barrier that also reduced the cost of products. with the exit of the UK from Brexit and no trade deal become the reason of trade restrictions and implementation of points system while immigration. Without a trade agreement, products also become expensive that may also reduce demand. References Ellyatt, H. (2020, 12 31). The post-Brexit trade deal begins, ushering in a new era for the UK- EU relationship . Retrieved from https://www.cnbc.com/2020/12/31/brexit-trade-deal- begins-as-uk-severs-ties-with-eu.html Faulconbridge, G., & Chalmers, J. (2020, 12 07). Explainer: The potential impact of Brexit without a trade deal . Retrieved from https://www.reuters.com/article/britain-eu-nodeal- idUSKBN28H1P7 Landler, M., & Castle, S. (2020, 12 30). Britain and E.U. Reach Landmark Deal on Brexit . Retrieved from https://www.nytimes.com/2020/12/24/world/europe/brexit-trade-deal-uk- eu.html

UK AND EU ANNOUNCE POST-BREXIT TRADE DEAL 8 Theguardian.com. (2020, 12 24). UK and EU agree on Brexit trade deal . Retrieved from https://www.theguardian.com/politics/2020/dec/24/uk-eu-agree-brexit-trade-deal- agreement Timesofindia.indiatimes.com. (2020, 12 31). What's in the UK, EU post-Brexit trade pact . Retrieved from https://timesofindia.indiatimes.com/business/international- business/whats-in-the-uk-eu-post-brexit-trade-pact/articleshow/80039150.cms

UK and EU Announce Post Brexit Deal.edited

Related Documents