Britain’s Exit from the EU and what You Need to Know

Britain’s Exit from the EU and what You Need to Know

With all the speculation of whether Great Britain will leave the European Union or not is over and they have voted to leave; what exactly does that mean to you?

This will depend on the exit strategy and how long it takes (it could be 2 years or a little more).

There are a few things we need to look at in order to figure out just what all this means to you.

Why did Britain decide to leave the EU?

The British citizens voted on June 24, 2016 if they should leave or remain in the European Union. The vote was a resounding Leave.

Now that the vote has led to leave, the exit itself could take as much as 2 years or a little more.

The voters felt that the cost of staying in the EU was greater than any worries about leaving, along with immigration concerns. Many Brits felt that the employment market and social services would drown with all the new residents.

There was also worry about the push for a continental identity, which would diminish the U.K.'s own sense of self.

Atop of that were the arguments made by politicians who were for leaving “that the EU's strong controlling administration and its required donations actually reduce the U.K.'s growth potential”.

The advantages and disadvantages of leaving the EU

Unfortunately since no one else has ever left the European Union, the advantages and disadvantages are speculation.

Membership fees the immediate advantage is the cost of the fee which last years was £13bn; however, £4.5bn was received by Britain in money back from the EU.

The real problem is if the financial advantages of EU membership like free trade and inward investment will offset the direct costs.

Trade The European Union is a single trade market with the countries that are member states, which has no tariffs imposed on imports or exports among the member states.

According to Sky News Britain exports more than 50% with the European Union countries. Britain also profits from commerce deals between the European Union and other world countries.

So while Britain would risk losing some of its negotiating power with the leave of the EU, it would be free to work out its own trade agreements.

Investment there are differing views: Some think the UK's position of being one of the world's largest financial centers will be decreased if it is no longer seen as an entry to the EU for the likes of US banks. On the other hand, those who voted to exit think that, free from EU instructions and principles, Britain could remake itself as a Singapore-style modified economy.

Sovereignty Some feel that EU institution has drained power from the British Parliament; while others feel that the trade for sovereignty gives Britain a larger influence on the world stage.

If the Brits are not in the EU they will still be bound by other treaties as well as well as very important connections to organizations such as NATO, the UN, and the World Trade Organization.

Jobs the rise or fall of jobs will depend on several factors; trade, investment and immigration. Those who wished to stay in the EU suggested that as many as 3 million jobs could be lost. The problem here is that they do not say if these jobs are dependent on the UK being connected with European Union.

According to The Economist; the cost of separation is much less than when the UK enrolled in 1973. Price obstacles around the globe have steadily been reduced in trade deals brokered by GATT and its replacement, the WTO.

Look at it this way exporters routinely have to soak up the increase of at least 3% caused by the surge and ebb of oil price jumps it would be equal to the import tariffs if they were measured by the volume of trade for each product.

The businesses such as essay republic, food and textiles where prices are much higher however would see worse increases. The British dairy exports could experience an import tax of 55% in the European Union market and as high as 200%. Average prices on clothing could raise their price in European Union markets by as much as 12%.

Another scenario is that according to Treasury figures, which suggest Britain, would be £8 billion ($13 billion) better off each year. In their scenario, Food could become cheaper since under WTO rules, countries may slash import barriers unilaterally if they do not favor some countries over others. Britain could do this for agrarian produce. It would recover jurisdiction over fishing privileges around its coast.

Britain as a whole for those who voted to leave the EU they believe it will permit Britain to be a genuinely independent nation with contacts to the rest of the world. Those who wanted to stay see it as giving up their influence in Europe and withdrawing from the global network of the 21^st century.

According the week: While The UK could be seen as a less useful, associate by its key ally, the US even though it will remain a member of NATO and the UN. The American administration said it feared that the "EU vote is a risky wager that could collapse with catastrophic consequences for the entire continent".

Terrorism there are two camps on this as well; the ones who wished to stay say that the EU help prevent terrorist attacks but those who voted to leave believe that they now can better control who enters the Unite Kingdom.

Conclusion

United Kingdom is the first country to leave the EU, it is hard to say for sure just what the consequences will be both for Great Britain and the world.

The speculation on both sides may make good points but we will have to wait and see how this all shakes out; especially considering just how long that might take.

Only time will tell what will be the complete outcome of this decision to leave the European Union.