A Comprehensive Report on the Economic Effects of Brexit

This report provides a comprehensive analysis of the economic impacts of Brexit on the United Kingdom and its international trade relationships. It begins with an introduction to Brexit and its implications, followed by an examination of the effects on the export of goods and manufacturing firms, including the challenges posed by tariffs, customs checks, and potential labor shortages. The report further explores the impact on the import of consumer goods, detailing how Brexit has affected import declarations, duty rates, and e-commerce. Finally, it investigates the consequences for trade in services, highlighting the disruption to mutual recognition of regulatory authorities and the complexities of international service trade. The report concludes by summarizing the key findings and emphasizing the challenges and complexities arising from Brexit, particularly for manufacturing and international trade.

Brexit

Table of Contents
INTRODUCTION...........................................................................................................................3
Main body........................................................................................................................................3
Impact of Brexit ..............................................................................................................................5
The impact upon the export of goods and manufacturing firm...................................................5
Impact of Brexit on import of consumer goods .........................................................................6
Impact of Brexit on trade in services ........................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Brexit is the withdrawal of the United nation from the European Union. The vote define
as the expectation and hamper the global market causing the British pound to fall to its lowest
level in 30 years (Bélanger 2019). Former prime minister David Cameron, who called the
referendum which help in providing campaign for Britain to remain in the EU. Johnson, a hard
line Brexit support campaigned on a platform to leave the main purpose to stay out of the
European Union. The UK joined the European economic community in the year 1973 with the
continued membership of the referendum. This report is based on Brexit and its impact on the
international trade. Along with this, export of goods it also impact export of goods from the
manufacturing firm and also have impact on the trade in service.
Main body
Brexit is the term which refers to the UK decision to move out from the European Union.
In order to implement this decision the voting has taken palace which effect the global market.
As the result the parliament put off the decision on the prime minister and trigger the Ben Act as
the top level government official were forced to ask EU for another extension of the negotiation
until January 31, 2020. It has been not unclear if all the 27 EU members will help agree to move
towards extension but British prime minister Johnson will tend to push general election little bit
longer. There were the major impact on the UK referendum while existing from the European
Union. This issue help in motoring as well as discussing the current trade flow in the
international market. At present EU countries are including the UK, fully benefit from the EU’s

Single Market. This includes the absence of duties and quotas for EU Member States doing
business and trading throughout the marketplace.
In other words it develop the burden for the companies which are trading with in EU. The
countries like United nations , Germany and china have the major impact on the trading. In the
same year, about 44% of UK export was directed to EU Member States, while approximately
53% of total imports originated in European union countries. Many nation as well as big
organisation have deep trade with UK and the decision which was made had effect many
countries in doing trade. Although Germany and UK have the largest trading partner in the EU
by the volume, Ireland has effect the most as the country was depend entirely on the UK and
share most of the import and export. Among western European countries, Belgium, the
Netherlands and Germany export importantly were doing trade with the UK. As the Brexit occur
the price elasticity of the export product, these countries try to export products which usually
increase the price of the commodity. This mainly impact on the final consumers as they are
purchasing high priced product. Post-Brexit outcomes which significantly increase the cost of
trade between the UK and the rest of the EU will be damaging for both sides.
Among the European nation countries the international export is mainly done by UK and
it also effected the countries related to the size of economy (Culkin 2019). In this list Ireland
score the top position along with Netherlands and Belgium. While Germany have the higher
impact because it export the higher quantity of there product and services to the consumer.
Germany has many other essential export destinations which could compensate for a decline in
UK bound exports after the Brexit. Along with this, UK is consider as the most popular place for
doing business for the Dutch and for Netherlands. Due to Brexit the increase in volume of Euro
and sterling have effected the trade as it improve the price for the common people. Due to Brexit
Belgium will be affected to a large extent by Brexit. 9% of the Belgian exports of goods is
shipped to the UK on the yearly basis which will increase the trade amount for the country.
Brexit will effect the trade base pricing as companies transporting the product as well as
services for the common people and will also impact on the common people. Due to this major
steps the transaction of the product and services are overpriced and people have to pay the
double tax to the government authorities. However different organisation and countries are
avoiding the double taxation policy in the EU. After the UK leaves the EU, the UK would no
longer be party to EU fiscal legislation and all the trade rules and regulation will be abide, along

with this no future trade will be done with UK. Beside this, country can not avail the tax benefit
which was given earlier.
In terms of timing, business can have opportunity as UK will Trigger article 50 before the
end of march hence there by the exit the union no later than in end of March 2019. The impact
impact on European Union trade will depend after the Brexit. Under the free trade agreement
which was done between UK and EU will get demolished and the rule will not apply on the trade
sector. Here are some major categories which were impact due to Brexit which are explained
down below:
Impact of Brexit
The impact upon the export of goods and manufacturing firm
Currently all the goods which are exported to the EU come to UK and nearly half of the
British goods are exported to EU in different part of countries (Canessa 2019). A recent study
conduct that there are 63% of all the British goods are exported to the European countries. Along
with this, it mainly service 450 million people. In April 2019, the British manufacturing sector
was down 4.1% due to car makers cutting back in anticipation of the original Brexit date
of March 29, 2019. The Canadian air plane manufacture Bombardier has recently announce that
it will shut down the production in UK due to Brexit. However other manufacturing firm also
decline the overall investment in the country as the decision made the trade more expensive and
increase the cost of production for the company. The car manufacturing company like Honda
also complaint about the slow down and increase in the price of product and services which is
provided by the company. Additionally, Honda pointed out that 40% of the workers who build
its new Civic auto mobile in the UK are EU nationals. Brexit will restrict the free motion of
workers, and this may cause a lack of skilled workers to run manufacturing firms.
If UK adopts standard that are different from those of the EU, British manufacturing help
in providing two separate manufacturing might have to develop different version of product.
Tariffs and costumes checks may occur as the serious problems for the different manufactures
who currently depend upon the trade and the sources of components and exports goods.
Manufacturers would have to abandon entire product lines if new tariffs make those products
parts too expensive to import. The survey around one thousand companies have claim that Brexit

have impact the production process of the company. This in result slow down the economy and
in result it also leads towards unemployment of the people around the world.
In addition to this, there will be increase in VAT and other services which are impact
directly on the final consumers. Along with this it also require permission each time whenever
the trade take place in any aspect. Beside this there may be additional documentation and
licensing requirements to meet security regulations, and health and safety standards that are
checked at the border with the government officials. Similarly the goods which will received
from the European Union will have to provide service charge at the time clearance. This make
thing for manufacturing company more complicated for doing business at the international level
and will have major impact on the economy.
Impact of Brexit on import of consumer goods
Brexit has direct impact on import of consumer goods in different ways such as increased
volume of import & export declarations, movement of goods under transit, duty rates are
anticipated to change, mandatory or recommended pre-arrival declarations, movement of excise
goods, authorized consignee/consignor status to ease movement through roro ports, no low value
consignment relief on vat into the UK for e-commerce, UK introducing postponed accounting
vat and so on (Bastos 2019). These are main impact of Brexit that directly effect on consumer
goods. Along with this, The nation has a government in crisis, a people separated and still no or
less certainty for an organisation and clients on whether the United Kingdom will be going away
with or without a trade, or even if Brexit will go on at all. The economic effect of Brexit will be
observed by precisely what type of deal is attained. Brexit will also effect every sector as well as
consumer market also in the United Kingdom, with labour shortages, currency depreciation and
deal access to European Union markets amongst the key problems. Therefore, Brexit is directly
impact on import of consumer good at international or global marketplace.
Impact of Brexit on trade in services
While the United Kingdom prepares to leave the European Union, the services trade
feature has received less aid in the public argument than trade in goods. Along with this, United
Kingdom influence to services trade ways however that organisation in different sectors in all
over the economy will be affected directly. If the United Kingdom leaves without a transition
time period, one thing is very clear as mutual recognition or acknowledgement of regulatory
authorities will end. Common recognition of regulatory authorities means that while the United

Kingdom is a Member State, an organisation which follows rules and standards of UK is
automatically compliant in all over the European Union. Likewise, an organisation based in
Finland that they can sell their services in the United Kingdom. Goods may face European Union
tariffs as well as checks at boundary when coming the individual marketplace. In the case of
services it is mostly national legislations behind boundary that hinder trade in service. The red
tape as well as the so-called issues to trade, find out who can come in a international marketplace
and how they are treated. Along with this, it introduces as a complicates trade in services and
negotiations regarding it. Trade in business services is more complex. It’s essential to look at the
means services are listed or traded relative to the boundary. The WTO differentiate 4 different
modes of supply which are cross-border supply, commercial presence, consumption abroad and
migration of natural individual and group of person to supply services. World Trade
Organization members commit to beginning their markets crosswise the 4 modes of supply.
These types of modes also characteristic in free trade agreements between nations and are helpful
in trade negotiations. Thus, Brexit has direct impact over trade in service at international market.
CONCLUSION
From the above mentioned report it has been identified that manufacturing firm will get
disrupted and it will become more complex in coming years. The EU nation and doing trade with
them will become more challenging as there will be no free movement of the goods from one
country to another. Along with this, there will huge impact on trade as well as on consumer
because the price will increase and it will be difficult for the people to purchase the product from
the market.

REFERENCES
Books and Journals
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the irrelevance of Brexit and the rise of nationalism. In 24th Conference of the
International Association for World Englishes.
Canessa, S., Morán Ordóñez, A. and Hermoso, V., 2019. Brexit: EU conservation suffers
too. Nature, 568(7752), pp.316-316.
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