How long is the UK in the Brexit process?
It took the British Parliament about 7 months to decide whether to leave the European Union. After a long time, the United Kingdom have decided to leave the EU after 40 plus years. The UK has been back and forth with the Parliament and the Supreme Court on whether to pass this bill or not. According to Angela Dewan and Simon Cullen, Theresa May the British Prime Minister has vowed to trigger Article 50 in the Lisbon Treaty of the EU, which says that the UK can leave the EU. They have finally made a decision on whether to pass the bill, on February 8th, 2017 the House of Commons have passed the bill to the House of Lords with votes of 494 yes to 122 no. Next, it moves on to the House of Lords, which they will debate on the bill for a week or two. Finally, it reaches the Supreme Court who then will vote on passing the bill. That means that when the House of Lords pass it and then the Supreme Court passes it, Theresa May will have enough to trigger the Article 50 of the EU, which then will begin the legal process to leave the EU.
What are the pros of leaving the EU?
There are many pros of leaving the European Union. One of the many pros of leaving the EU is the cost of being part of the EU. According to the estimates from the Metro newspaper, the economic cost of being a EU member is around 11% annual GDP, that is around about £200 billion. Another reason is that the UK could individually pursue trade deals with India, China, and the US. They can individually pursue trade deals because they don’t have to be regulated by the EU, they can make their own deals with different countries. Also, they don’t have to follow whatever deals that the EU have made and share jointly with countries in the EU. According to the Bloomberg Website, Nigel Farage is a Pro-Brexit politician, who believes that a deal could be stuck with the EU, that would let the UK have access to the EU market to trade but doesn’t have to follow their laws and regulations. Even with all the cons Theresa May still faces a lot of trouble of pushing the bill through.
What other obstacles is Theresa May facing from the government?
The Prime Minister Theresa May still faces a lot of problems like, when they leave the EU market what will they do, also, what will they do without the EU protection, and many more. One of the many problems is that the market for trading in the EU is so vast and big, that the UK would have to pull out of it and find some new trade deals very quickly. Another major problem with Brexit, is that according to Ahmet Gurhan Kartal a journalist, when the UK leave the EU, it will leave them vulnerable to attacks from terrorist organizations or organized crime. In the time that it takes for the UK to find a deal with the Europol or find a way to defend themselves it might be too late. An additional problem that the UK may face with Brexit, is that even though the economy is doing well; the household members are borrowing way more than they saving, which will cause inflation. Also, according to Scott Hamilton from Bloomberg.com states, the UK currency [British Pound] have dropped at least 15% since the announce of Brexit, which have made the import cost way much higher than before.
What are the trade complications that the UK will face?
When the UK leaves the EU, it will be hard for UK companies to trade within EU because they will be taxed for importing the goods. Since UK was part of the EU and per EU agreement, UK companies were exempt of import taxes. According to the Telegraph, a British based newspaper company, British companies are going to have to live with the taxes or find new deals with individuals countries outside EU so their goods won’t be taxed.The same article goes on to say that since the UK has been in the EU market for a long time they would need to make a deal quickly with the EU countries or UK and their companies would not have an avenue to trade and sell their products. According to the Guardian, also a British based newspaper company, UK will not be able to make any deals with individual countries who belong to the EU, due to the agreement these countries have with the EU; unless UK makes deal with the EU.
How will it impact the World?
When Britain legally leaves the EU, it would a historic measure and it would impact the world in so many ways. According to Forbes.com, “British-EU divorce will push capital away from the region and toward key safe-haven markets including the U.S.—especially Treasuries—and to Japan. This will further lower market interest rates and raise relative currency values”. This would drive the currency values down around the world. Also, it would force companies to move from the UK into different countries in the world and affect their market. According to Bloomberg.com, many business are taking hits because the Brexit uncertainty is causing many companies problems like jobs and investments, profits and prices, headquarter moves, and deals. For example, Apple Inc. raised their products prices in the UK and in Ireland between 12% - 37% due to the drop of the value of the British pound. Also, Qatar Airways, have bought more stock into British Airways due to the stock prices falling because of Brexit. Brexit will change the world in many ways, but we don’t know how or when.