CROSS-BORDER TRADE BETWEEN EUROPE AND UNITED KINGDOM AFTER BREXIT

Аннотация

INTRODUCTION came into force in May 2021. Brexit was the withdrawal of the United Kingdom (UK) from the European Union (EU) on 31st Economists and other analysts believed that Brexit January 2020. The UK is the only sovereign country would have damaged immediate and longer-term to leave the EU. The UK was the member of EU and effects on the economies of the UK and a part of the the EC since long time and that is since 1st January EU27. Economists thought that the Brexit would 1973. After the Brexit EU laws have no Primacy reduce the per capita income for UK and will over the British laws, except in selected areas in damage the GDP of the UK. The studies found that relation to Northern Ireland. Under the terms of Brexit-induced uncertainty reduced British GDP, the Brexit withdrawal agreement the Northern British national income, investment by business, Ireland continues to participate in the European employment and British international trade from single market in relation to goods and be a de facto June 2016 onwards. The UK’s high levels of spatial member of the EU customs Union. The EU and its inequality have motivated interest in forecasting institutions have developed gradually since their the regional effects of Brexit (McCann 2018). establishment and during the 47 years of British However, studies using different theoretically membership and grew to be of significant motivated measures of Brexit exposure give economic and political importance to the United conflicting answers about which regions are likely Kingdom. The effects of Brexit will in part be to be hardest hit. Dhingra, Machin and Overman determined by the cooperation agreement which (2017) estimate the impact of Brexit on local gross provisionally will be applied from January 202 and value added by interacting sectoral estimates of https://www.theamericanjournals.com/index.php/tajmei 96 THE USA JOURNALS THE AMERICAN JOURNAL OF MANAGEMENT AND ECONOMICS INNOVATIONS (ISSN- 2693-0811) VOLUME 06 ISSUE11 the impact of future trade barriers at the national voters who oppose immigration and feel left level from Dhingra et al. (2017) with sectoral behind by modern life. Leaving the EU is not in the employment shares by local authority and economic interest of most of these left-behind metropolitan areas. They find that areas with voters. However, there is currently insufficient larger services sectors, such as London and the evidence to determine whether the leave vote was southeast would be worse hit. Interestingly, these primarily driven by national identity and the areas also had lower Leave vote shares on average. desire to “take back control” from the EU, or by By contrast, using regionalized input-output tables voters scapegoating the EU for their economic and to measure the share of domestic value-added social struggles [2]. embodied in UK-EU trade, Chen et al. (2018) finds Relationship between United Kingdom and that poorer regions in the midlands and north of European union after Brexit England are more exposed to Brexit.[1] After the formal notice from UK to the EU LITERATURE REVIEW negotiations started and it lasted slight over 2 In 2017 United Kingdom gave a formal notice to years span. Article 50 of the Lisbon Treaty allows European Union about the discontinuation of its the negotiations on a withdrawal to last for at most membership and bought the whole union in shock. two years. After that period the withdrawal Although most of the Britain’s establishment requesting country that is UK in this case backed and wanted to stay back, almost half automatically ceases from being a member of the percent (52%) of voters disagreed and handed a European Union. The withdrawal agreement surprise victory to the discontinuation campaign. would include Britain’s outstanding financial This occurred nearly in 2019 and was known as liabilities to the EU, the future status of citizens of Brexit. both countries living cross borders and the framework for future UK–EU relations; but will not Why did the UK decide to take this step? finalize the details of any new relationship Since World War II the period has been marked as (European Council 2017). There are 3 options for a growing period economically and in cultural them at this stage. First, UK could remain part of globalization. Moreover, increasing political the EU’s single market by joining Norway, Iceland integration under the auspices of the European and Liechtenstein in what is called European Union was a main issue as well. Brexit proves to be Economic Area (EEA). The next option was the EU a departure from such a trend, and this was one of and UK signing a free trade agreement to govern the many reasons for UK’s departure from their trade and economic relations. The other European Union. UK leaving the EU means leaving option was, if no alternative agreement is reached, the EU’s supranational political institutions and the UK and EU would trade under the most-favored will lead to the erection of ne