Parties Involved in Brexit Negotiations and Its Effects on UK and EU

Brexit negotiations involved two parties, the UK and the EU. Brexit would signify economic losses for all Member States involved, but the UK would be the most affected. The UK could lose access to a market of 500 million people and face tariffs and regulatory barriers to trade. The free movement of people could also be rejected, and the UK would have a weaker position when negotiating bilateral deals with the EU. Brexit would limit trade with other EU members, leading to food shortages, inflation, and lower standard of living for UK residents.

Brexit - British Exit
Parties involved in Brexit Negotiations
In Brexit negotiations, there were two parties involved, the Great Britain party and the
European Union party. The UK started its negotiation in 2016, with a team led by David Davis,
who is the secretary of state for exiting the European Union. Oliver Robbins would later head the
UK talks. On the other hand, the European Union party has Michel Barnier who is a chief
negotiator and EU diplomacy. The stakeholder of BREXIT are simply the people living in the
current UK; in other words, the country itself.
Effects of Brexit to EU
Brexit would signify economic losses for all the Member States involved. However, the
UK would be, by far, the most affected. Another important factor would be that all Member
States would have to contribute more to the EU budget, within the international trade
perspective, this could mean losses since some partners are connected to the EU through the
UK’s net of trade.
EU would lose an important economic partner in the context of the worldwide market of
the global economy. It could be faced with a loss of ‘power’ within international politics and
would be affected in terms of global trade partnerships.
Brexit would convey a difference in patterns of migration, where EU rich countries
would have easier access to the UK than other EU countries.
How BREXIT have affected the United Kingdom
In case the UK would exit and still manage to obtain a Free Trade Agreement with the
EU, it could signify that the country would have an estimated loss of 2.2% GDP, however, if it
does not reach an FTA it can have losses of 6.3% to 9.5% of GDP (Allen et al., 2015)>

It would also mean that the UK could lose access to a market of 500 millions of people
and face tariffs and regulatory barriers to trade. Besides, British access to international trade
would be compromised, since Britain would have problems in exercising its influence in global
markets. A possibility for Britain choose towards a more protectionist approach instead of
liberalization, could also represent a potential outcome.
For the UK, it would also mean that the free movement of people could be rejected due to
change in the travel laws requiring people to use a visa every time they visit the country.
It is clear that the UK would have a weaker position when trying to negotiate bilateral
deals with the EU. It would have problems in exercising its influence alone in the global markets,
and its impact and status would lessen, rather than increasing, since it could be considered as an
‘untrustworthy’ economic partner.
How its stakeholders get affected
Trade with other EU members will be limited, and this could create food shortage, tariffs
would be re-imposed, hurting exporters, and leading to a decrease in the value of the pound.
Tariffs would also increase prices of imports into the UK creating inflation and lower the
standard of living for UK residents.

References
ALLEN, K., OLTERMANN, P., BORGER, J. AND NESLEN, A. 2015. Brexit - what would happen
if Britain left the EU? [Online]. The Guardian. Available:
http://www.theguardian.com/politics/2015/may/14/brexit-what-would-happen-if-britain-left-eu-
european-union-referendum-uk