Impact of Brexit on United Kingdom: Changes and Challenges

This report discusses the impact of Brexit on the United Kingdom, including changes during the transition period, sovereignty of Parliament, and post-Brexit challenges. It also covers the impact on the economy, trade, education, and financial services.

INDIVIDUAL
REPORT

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
During the transition period, things what stayed same................................................................2
Changes at the end of transition period........................................................................................2
Sovereignty of Parliament............................................................................................................2
Post Brexit ...................................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................4

INTRODUCTION
The United Kingdom is no more part of the European Union, the transition period was
also ended. It means that, UK has left the single market of EU, custom of EU and the main thing
EU laws were no longer applies in UK. The situation brings changes like at that level where the
residents of UK at the time of travelling have to carry the necessary healthcare cover to travel to
the EU. There are so many other modification done after the BREXIT transition period which is
a withdrawal agreement of UK from the EU membership. The transition period got started
immediately after the UK left the EU i.e. on 31st of January 2020, after that the UK government
didn't used the word transition period they prefer to use the word “implementation period”. There
is a reason behind it that, after withdrawal agreement of UK from EU, the EU decided not to
share the new details of an arrangements with the UK (Arshad, Rizvi, and Haroon, 2020). The
UK wants the time to get agreed with the new relationship regarding the business which is
without the non- EU rules.
MAIN BODY
The separation of United Kingdom from the European Union was done by the procedure
of BREXIT which has a meaning like Britain Exit. The decision to get exit from EU is the
biggest decision in the history of world politics and it put the large impact on UK as, it is the
main part of the EU. To get separated from EU is the big task for the UK, it affected the
functioning of each and every sector they have to build their own laws and regulations after it,
but they got the independence after left out the EU. After the separation the parliament of UK
become the sovereign power which makes the legislature and has the supreme authority of
making laws and also denied to adopt any law (Barnard, 2022). There is a period which would be
known as the transition period, it is an agreement between EU and UK about leaving the EU by
the UK. That period was last until 31st of December 2020, but the withdrawal agreement force to
extend the transition period by two years. The government decided that any extension or
transition and legislated for a commitment would not got agree to extend the transition period in
the withdrawal agreement. After the date of 31st January 2020, UK was no longer the member of
political institution of EU, there were no UK MEPs presented in the European Parliament and
also there were no UK Commissioner and UK minister attended meetings of EU after that.
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During the transition period, things what stayed same
Even getting the independence from EU, UK is still the part of EU's economic
institutions and also of security co-operation arrangements at the ned of of the transition period.
Before ending the period of transition period, EU treated UK as the member of the single market
and of custom union. The EU also stated to their business partner's to treat the UK as the member
of state until the transition period comes to an end. There were no changes in the rights of
movement and also of citizen's rights not being affected during the end of the transition period.
Throughout the transition period UK remains the subject of EU law and the rulings of the
European Court of Justice remained till the end of the transition period (Breckenridge, and
Feldschreiber, 2019). On the matter of security, there are some countries like Germany which
cannot extradite their citizens with the help of European arrest warrant to those countries which
are not the member states of EU. At that time there was no extradition took place in UK.
Changes at the end of transition period
When the period of transition comes to an end the relationship's of UK with EU would
get determine by the new agreement which was negotiated by EU and it was on trade and other
areas of businesses. According to the conservative manifesto the free trade agreement was loose
as a result the Great Britain leave the single market and custom- union and in a security of co-
operation did not mention anything. For the security of Co-operation the UK has to rely on
previously international conventions and got trade with the EU on World Trade Organization
terms. There is a exception of these case where the Northern Ireland whose trade relation is good
with EU would got covered by the provisions under Northern Ireland Protocol. Through the help
of EU Withdrawal Act 2018 at the time of not having deal, UK continued to followed the rules
which got transferred into UK. At the end of the transition period UK would be able to move, if
UK courts took the decision to understand existing EU law in the other manner or the
government brought some changes into UK law (Byrne, and Rice, 2018).
Sovereignty of Parliament
The sovereignty of the parliament was always the topic of debate from the time since
Britain joined the European parliament in the year of 1961 and after that when the The act of
European Communities got codified in 1972. In the one case, sovereignty become the question
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and the decision was made in favour of parliamentary sovereignty. There was a strong support
from the voters to end up the clench of EU on the UK governance and it become a motivating
factor for BREXIT. In the analysation just before the voting it got discovered that, EU and its
adverse impact are one of the problem which got faced by the UK. Sovereignty of parliament
becomes unsettled when EU made the decisions over the substantive policy which are
incorporated into the UK constitution (Fernandes, and Winters, 2021). The historical precedents
of government got diminished by consent, and to overcome wit this situation parliament took the
several important steps to resettle their power in relation to Prime Minister negotiated
withdrawal agreement which includes; secure votes fro MPs, voting for rejecting the decision of
Prime Minister, shaping future direction. Parliament then by voting preventing a No Deal Brexit,
these are some developments on the agreement which resettled the role for parliament in
identifying it sovereignty.
Post Brexit
After the agreement of BREXIT, several issues like trade, open single market, treaties
and the agreements become clear. They maintain their relation with an agreement regarding the
business relationship and even the education sector got highly affected. Students wee restricted
to get the education from the states of the EU, before that they were free to get the education
from any states of EU nut now they don't have many choices. There is great impact of Brexit on
Britain, after the result of referendum, their currency which is pound got fall down like 31 year
before. As a result the investors were not sure about the UK's future after Brexit, their confidence
got down regarding the trading in Britain. The British car plant in which the they are good
enough as they got the parts from all the Europe and they export most of the finished cars to
Europe as well (Korus, and Celebi, 2019). The Brexit also impact the supply chain, companies
have to delay their deliveries at the borders for importing the components. Like Honda which
capture the market in Britain decided to close its plant form there even Nissan decided to migrate
from Britain to Japan. There are another industry which got highly affected i.e. financial service
industry. There are many laws made by the EU, regarding the banks but, after Brexit it leaves the
bank in the survival condition (McConalogue, 2019). The banks of UK were not able to access in
the European market and it was cleared by the data analyses that, banks and financial companies
got shifted which is worth of $ 1 trillion of assets from UK to EU.
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CONCLUSION
From the above report it can concluded that there were both the aspects which got faced
by the United Kingdom after getting independence from European Union. On the one one side
they got the freedom, they have the their own law making authority i.e. parliament and it got
supreme in it. On the other side there are many restrictions which UK faced like; in trading to
other European countries, students were not able to choose the institution of their choice in EU.
There was huge impact on the economy of Britain after leaving the European Union, their banks
were not able to get access in the EU markets, the tariff system affected the economy of UK at
different level, the value of currency got weak which leads to increase the portion of exports.
REFERENCES
Books and Journals:
Arshad, S., Rizvi, S.A.R. and Haroon, O., 2020. Impact of Brexit vote on the London stock
exchange: A sectorial analysis of its volatility and efficiency. Finance Research
Letters, 34, p.101240.
Barnard, C., 2022. Taking back control? Rule by law (s) and the executive in the post-Brexit
world. Oxford Review of Economic Policy, 38(1), pp.11-26.
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Breckenridge, A. and Feldschreiber, P., 2019. Impact of Brexit on UK and EU drug regulation
and patient access. Clinical Pharmacology & Therapeutics, 105(4), pp.923-925.
Byrne, S. and Rice, J., 2018. Non-tariff barriers and goods trade: a Brexit impact analysis (No.
6/RT/18). Central Bank of Ireland.
Fernandes, A.P. and Winters, L.A., 2021. Exporters and shocks: The impact of the Brexit vote
shock on bilateral exports to the UK. Journal of International Economics, 131,
p.103489.
Korus, A. and Celebi, K., 2019. The impact of Brexit news on British pound exchange
rates. International Economics and Economic Policy, 16(1), pp.161-192.
Malcolm, N., 2019. Brexit is about Sovereignty and Parliament must respect that. Financial
Times, 25.
McConalogue, J., 2019. The British constitution resettled: Parliamentary sovereignty before and
after Brexit. Springer.
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