Problems in Trade Relations due to Brexit

This article discusses the problems in trade relations caused by Brexit, including the negative impact on the economy, tariffs, and import costs. It explores how Brexit has affected the UK's per capita income and the reduction of tariff-free trade with the European Union.

Problems in Trade Relations
because of Brexit

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Brexit refers to the exit of the Britisher from the European union in the June 2016. The
people of the UK voted to leave the union of the Europe. The calculation of the vote is that
maximum people wanted to leave in respect of people who voted to remain like 17.4 million
people are ready to leave and 15.1 million are not ready. Due to the Brexit the level of per capita
income of the UK reduces and affects their economy. In the long term Brexit affects the
economy of the British. The status of tariff free trade in Britain is reduced with the members of
the European union.
MAIN BODY
Brexit is the problem because it will have negative impact on the economic, political and
social status of the country. It would delete the status of the free trade of tariff in Britain and
increases the export cost. The exporters of the UK suffered greatly because their products and
services become costly in the Europe. There is also increases in the prices of the import in the
UK because of tariffs and larger share of the goods and services are come from the country of
European union. So the increase in the imports will decreases the standard of leaving and creates
inflation. The production of the local food products also reduces because of droughts and waves
of the heat due to the global warming in the UK (Bhattacharya, 2019). Services of phone,
internet and airfares cost increases in the UK. There is the shortage of the skilled and talented
labour in the Germany in the future because of the Brexit. So there is the big loss in the services
of the London which they provide to the customer. The issue of politics is the agreement of the
Good Friday which happened due to the Brexit. Leaving the unions of the Europe have great
impact on the economy of the country. The dealing of the trade with the Europe is renegotiated
due to the manufactures of foreign automobile in UK. In the sale of the products and services
like grains, vegetables, meat, fish. The students of the European union have to pay larger fees to
the universities because of the Brexit(Wolff, 2019). The impacts if the Brexit will not only
affects the economy of the Britain but also the economy of the European union and economy of
the world also. The parliamentarians of the Europe wants that the UK did not leave the Europe
and remain stayed in the union of the European.
European union refers to the set of 28 countries of the world which works as the single
unit of the economy of the world. The main currency is in the form of the euro and all the
countries which are included in this have to adopt this currency. In 2016 there is the voting

between the people of the UK which gives their to vote to leave the European union. The growth
of the business which established in the Europe affected by the uncertainty of Brexit. This union
allows the free flow of the people and products expects the products like drugs. The members of
the EU transmits with the various technologies of the state of art. Without any kind of tariffs and
duties the products and services are sold to the countries if they are produces in other member
countries of the EU (Wolff, 2019). The result of the Brexit is it brings changes in the social and
economical and makes institutional and political shifts in the long term of the union. The polices
and practices of the EU on the movements of the freedom and advantages of the economy. The
voting will gives the strength to the parties of the anti-immigration in the whole Europe. In the
Germany and France of the parties will achieve the enough ground than it will enhance the vote
of anti EU. The voting to leave the EU will creates lots of problem for the united states because it
is against the globalisation. The exit of the UK from the European union increase the barriers to
effective flow of capital, mobility of workers and trade barriers affects the jobs and outputs of
the UK and other members countries of the EU. The European union policies of the development
faces various problems and challenges such as problems related to the obligations of legal,
shortfalls in the budget the security in continuity of business.
When the UK decides to leave the European union it will affects the relation of the trade
in the UK and all the 27 countries of the EU. The Brexit will shaped due to the nature of divorce
deal. Those companies of UK which traded goods and services freely in the markets of the
Europe which imposes the cost on every time when the cross the national borders. These cost of
the trading will increases the chances of the tariff and non tariff barriers in the European
countries. Brexit will increases the threats of the effective and efficient education such as loss in
the research investments from the EU, affects the ability to hire the skilled teachers from the
different states of the EU, affects the abroad study of the students of the UK. Brexit will
eliminate the advantages of the single market for the industries of Germany (Foreman-Peck,
2018). Trading cost between the UK and EU will increases and it also affects the fiscal
regulations of the trade. For the transportation of the products and services in different countries
of the EU have to pay taxes. The trade of the Europe increase the powers, control the borders,
corporation of judicial in civil and different matters of crime and cooperation of police. The real
per capita income of the UK affected due to the Brexit (Cox, 2016). There is also decrease in the
level of the GDP by 1.2-4.5% for the UK. The trade of the UK become worst when the British

leave the European union so there is the negative impact on the trade. There is the agreement of
the trade between the UK and EU after Brexit so they imposes the tariffs on imports and exports
of the each other product and services. For the fulfilment of financial commitments UK have to
pay the bill of divorce which is around 33 billion pounds. There is the complications in the
trading and travelling on the different islands of the Ireland. The success and the growth of the
UK is reduces due to the uncertainty of the Brexit from 2.4% to 1.5% (Nwankwo, 2018). In the
15 year because of the Brexit it lowers the growth of the UK by 6.7%. Free policy of trade and
tariffs will gives various advantages to the countries of the EU and by eliminating this features
creates various difficulty for the people of UK and countries of Europe.
The standard of living of the people of UK is reduced due to the exist of British from the
EU. It gives less advantages from the integration of the market in the future in the EU. Due to the
Brexit all the countries of the European union faces loses in the income and the GDP of the UK
decreases (Jongeneel,van Berkum and Vrolijk, 2016). The productivity of the business will
decreases for the long period of time at the time when UK is leaving the EU. When all the tariffs
is removed by the UK from the imports of the products and services then it will decreases the
income by 1% in the case of optimistic and in the case of pessimistic it is reduced by 2.3%. The
effects of Brexit implies lots of changes in the plans and policies of the and most f the business
of the US are affected highly. The success and the growth of the business needs much prices and
creates the process very complex. Decrease in the trade will creates the negative impacts on the
other countries also. Greater loss is faced by the Ireland due to the Brexit (Morgan, 2017).
Because of the increase in the prices of the products and services the living standard of the
people also reduced and it will influence negatively on the economy of the country. It will
influenced the regulations of social, environment and employment in the UK. By the changes in
the migration, investment and regulations it will affects the economy of the UK. Europe is the
danger condition because of the Brexit because it will gives negative impact on the overall
economy of the world. Reduction in the level of the income affects the productivity of the
business in the countries of the EU. Because of the high prices the success of the micro and small
business affected in the UK and they have to pay more for the in the EU from they receive
(Kennes, 2018). Most of the people of UK think that leaving the UK will damage the
international status of the UK. Prices of the travelling and communication across the country is
increases and it enhance lower income group of the people. The investment of the business is

also reduces by the 11%. Brexit will creates the uncertainty in the whole UK and the living of the
people are highly affected because the prices of the products and services are increases due to
increases in the cost of the imports and exports in the UK. Changes in the policies of the trade
creates the various difficulty in the transportation and communication in the business.
CONCLUSION
From the above study it can be concluded that exit of British from the unions of Europe
creates various kinds of problems on the economy of the world and both on the European
countries and UK. The Brexit will reduces the chances of the free trade between the different
countries of the European union. The UK have to faces various challenges when they leave the
European union. The goods and services become more costly and it will affects the business of
the exporters. Because of the tariff the prices of the imports also increases and it will leads to the
inflation in the country.

REFERENCES
Books and Journals:
Bhattacharya, P., 2019. Brexit: End of Britain’s European Odyssey. In Challenges in Europe (pp.
61-84). Palgrave Macmillan, Singapore.
Cox, P., 2016. Europe After Brexit. Fondation Jean Monnet pour l'Europe.
Foreman-Peck, J., 2018. Brexit could be an opportunity for the Welsh economy. LSE Brexit.
Jongeneel, R., van Berkum, S. and Vrolijk, H., 2016. Brexit: Breaking away–would it pay?.
EuroChoices. 15(2). pp.26-33.
Kennes, W., 2018. How Brexit may affect ACP-EU relations.
Morgan, J., 2017. Brexit: Be careful what you wish for?. Globalizations. 14(1). pp.118-126.
Nwankwo, C.F., 2018. Brexit as critical juncture: factors for UK’s environmental policy
amendment. Climate Change. 4(16). pp.723-727.
Wolff, G.B., 2019. The implications of a no-deal Brexit: is the European Union prepared? (No.
29074). Bruegel.
Wolff, G.B., 2019. The implications of no-deal Brexit: is the European Union prepared? Bruegel
Policy Contribution Issue n˚ 2| January 2019.