The media has been flooded with stories about Brexit since its initial announcement back in 2016, but for those of us outside of Europe, this is completely foreign to us. Even though the United States is not directly involved with this, our country will still feel the aftermath of Britain officially separating from the European Union (EU). To catch you up, here is a complete breakdown on what is happening between the EU and Britain.
In its simplest form, Brexit is referring to Britain’s formal exit from the EU. This is supposed to occur on Oct. 31, 2019, making it the first country ever to leave the EU.
*Courtesy of Giphy.
Rewinding back to June 23, 2016, Britain held a public vote–also recognized as a referendum–which resulted in 52% of the public voting in favor to leave the EU. So essentially, a little over half of the public wanted to leave, which left Parliament with the job of negotiating a deal over the terms of its exit. This is where things get messy.
It is formally stated that if a member state decides to leave the EU, then it has two years to negotiate a deal and leave. Britain so far, has delayed its exit three times. At the time, Britain’s Prime Minister was Theresa May and her attempts at a deal all failed due to parliament voting to reject her proposals. This lead to unrest within the country, resulting in Prime Minister May stepping down from her position and being replaced by the current Prime Minister–Boris Johnson.
*Courtesy of Giphy.
As hard as the country has been trying to negotiate a deal, the major conflict has to do with Northern Ireland. In case you didn’t know, the Republic of Ireland is separate from Northern Ireland. Meaning, Northern Ireland is considered a territory of Britain, but has its own government, whereas the Republic of Ireland is completely independent from Britain. Currently there is no border separating Northern Ireland from Ireland, allowing the free flow of goods across the border.
Since Northern Ireland is technically a part of Britain, exiting the EU will end that free trade and borderless travel causing turmoil within the territory. The history of sectarian conflict in the region has heightened fears that a “no-deal’ Brexit will result in an increase in paramilitary activities and the return of the “Troubles.” This worry defines the importance of resolving the dispute over the border.
To relieve the tension, Theresa May’s deal proposed Britain and the EU have put in place a “backstop,” which is basically a legal guarantee to avoid a “hard border” under all circumstances. Under the terms of the backstop, the U.K. would remain in a customs union with the EU until it was able to strike a deal to ensure that the border remains open. This is prevalent because Northern Ireland is the only land border that connects the United Kingdom to the EU.
If a deal is not made by Oct. 31, the country risks exiting without a deal, which voids the backstop–so no borderless free trade. Right now, the UK can leave without a deal or appeal to delay until January 2020. Recent legislation that passed through Parliament makes it a legal requirement for the Prime Minister to request a delay on Brexit unless a deal is made. This does not eliminate the possibility of a no-deal Brexit as an extension would still need to be granted by the EU.
At this time, Prime Minister Johnson is determined to ensure that the U.K. leave the EU by the Oct. 31 deadline but no further proposals have been made for a deal between the EU and Britain making exiting without a deal more likely. This will cause the pound to continue its decline and trade for the U.K. will cost more as it will no longer be given preferential treatment under the protections of the EU.
*Courtesy of Giphy.
Sources:
Brexit: All you need to know about the UK leaving the EU
The trade cost of a no-deal Brexit to the United Kingdom
Brexit: Talks ‘should not be a pretence’ warns Barnier