Brexit Unveiled: Consequences of Brexit on EU-UK Relations

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June 23rd, 2023, marked the seventh anniversary of the Brexit referendum in the United Kingdom. The surprising majority “Leave” position caused an unprecedented shift in the landscape of European politics. Particularly, it affected the ways in which the European Union and the United Kingdom would interact regarding policy decisions. Changes in the structure of the United Kingdom would come in the form of economic, political, and social challenges. These challenges have erupted as a direct consequence of the political reform coming from David Cameron’s Conservative government. The consequences of the Brexit referendum have been riveting and in this article, the world of implemented policy is addressed to observe the impacts of the referendum's success. 

One of the most significant outcomes of the Brexit decision was the negotiation and implementation of the UK-EU Trade Agreement. This historic agreement aimed to establish the terms of trade between the UK and the EU. It detailed the extent of this new relationship and how each entity would interact regarding preferential arrangements in areas such as trade sector for goods and services, digital trade, intellectual property, public procurement, aviation and road transport, energy, fisheries and social security. 

However, the negotiations leading to this trade deal were far from smooth. In particular, the aftermath of the referendum has given rise to several critical issues. Firstly, a key point of contention lies with the political consequences of the tariff agreement itself. The UK's departure from the EU's single market and customs union meant that tariffs and non-tariff barriers were introduced. This significantly impacts the flow of goods and services. The implications of these policy changes affected global business such as Goldman Sachs. Such companies have felt the brunt effects of Brexit as their cross-border operations have experienced immediate disruptions, particularly in increased costs of moving their operations away from a riskier UK market. 

Another critical aspect of the trade agreement was the establishment of regulatory bodies to oversee economic ties between the UK and the EU. Those in Parliament sought to use Brexit as a means to regain sovereignty over the domain of regulations, which often clashed with the EU's insistence on maintaining certain standards, ensuring a level playing field across all EU nation-states. The tensions in establishing these regulatory bodies became apparent when the UK tried to strike a balance between maintaining its autonomy and adhering to internationally recognized standards. This created a rift in economic relations that continues to be a point of discussion and negotiation in current political debates. Particularly, within the British Parliament, there continue to be political factions regarding the extensive cooperation that the UK should seek towards maintaining previously held standards on trade and regulations. Moreover, alongside the economic departure, the Tory party recently advocated not only to depart from a more structured economic arrangement, but proposed to leave Europe’s human rights treaty.

This brings about the next area of contention as Brexit has brought about changes in immigration policies, stirring a wide array of controversy and debate in the UK. As the UK adopted a policy that requires any non-citizen to apply for a visa if they wish to work in the UK in 2021, the free movement of citizens from within the EU to the UK came to an abrupt end. Already dealing with a shortage of low-skilled labourers, the new immigration system introduced by the UK government aims to prioritize highly skilled workers and reduce low-skilled immigration. While proponents argue that these policies are intended to protect the domestic job market in the UK and the country's national resources, critics argue that they may lead to labour shortages and negatively impact sectors that rely on non-skilled labour . Furthermore, these policies have stirred concerns about discrimination and the potential to create barriers for those seeking refuge or sanctuary in the UK. Public perception of these more inclusive immigration policies is divided. Some welcome the changes as a way to gain more control over immigration. Others, however, are concerned about the potential negative consequences of shifting labour supply. 

Moreover, the Northern Ireland Protocol, a vital component of the Brexit deal, was intended to address the unique political situation of Northern Ireland. Ending decades of sectarian violence, the Good Friday Agreement removed the physical border infrastructure between Northern Ireland and the Republic of Ireland, dismantling the symbol of division that had fractured the two nations. As part of the Brexit withdrawal negotiations, this protocol seeks to minimize the need for border checks by keeping Northern Ireland aligned with some EU regulations including remaining in the EU’s customs union, implementing the same Value Added Taxes, and upholding agricultural food standards to minimize destabilization. However, this has proven to be controversial amongst the government of Northern Ireland and has created tensions between the UK and EU over its implementation. However, it has created its own set of challenges and controversies. Firstly, the protocol effectively established a border down the Irish Sea, leading to disruptions in trade between Northern Ireland and the rest of the UK. This has sparked concerns among unionists who see it as a threat to the constitutional integrity of the UK. Simultaneously, nationalists in Northern Ireland see the protocol as a vital safeguard to protect their economic and political ties to the EU, creating political tensions within the UK since the inception of the agreement. Left without an effective resolution the Northern Ireland Protocol remains a source of political tension between the UK and EU.

Since the referendum’s passing in 2016, much has changed regarding the political landscape of the UK. Once held as the continent's leading hegemon, the UK’s recent efforts towards protectionism have created a sentiment that Parliament has a clear lack of vision and direction. Bringing past regional issues to gleaming light and introducing new policies that have created severe factions within the government, the way that the UK will deal with its newly established borders in the near future may well result in a significant questioning of its decision to leave the prosperous EU economy in the first place. It is in the hands of its people to decide the future of the nation's international prospects, a daunting task in a political environment that is overwhelmingly filled with international actors picking sides in attempts to maximize their position for personal gains.