economy · European economy · Global trends

Brexit has started

U.K.’s departure from EU has began …..

Experts are concerned about the following 5 key issues

1. Financial commitments

there seems to be agreement over honoring existing joint spending commitments is anticipated through 2019, however supporting infrastructure, social and other commitments continue to be a area of disagreement.

2. Migrant rights

Current rules allow British citizens to live and work in any of the European union member countries will be dissolved with full implementation of Brexit. Millions of individuals will be affected with this change.

To shield themselves from this challenge many have migrated to other EU countries in the hopes of keeping their EU passports. Germany and east EU countries like Hungary have been flooded by migrants.

3. Trade and tariffs

Free trade agreement allows Britain to sells it’s products and services to the entire European union. Brexit will have a significant impact on the free trade agreement.

Experts point out that European Union members are U.K.’s largest trading partner, it accounts for over 45% of the exports and 50% of the imports. Brexit could complicate trade deals with new rules and documentation.

4. The top 3 

Automotive, airlines and financial services drive U.K.’s GDP. Financial services alone accounts for 12% of U.K.’s GDP. Brexit may result in relocation of these services to other European union members.

Automotive manufacturing in Britain could face new tariffs under the World Trade Organization rules. Like many other developed countries Britain imports a large number of parts required to support the automotive industry.

The airline industry will face it’s own set of challenges. Current Open Skies agreement allows U.K. flights over the European union member countries, Brexit will have to find a suitable solution.

5. Immigration

The U.K. is an island nation but it still shares a land border with the EU. Currently U.K. Residents currently enjoy free movement across the border with Ireland. Brexit, would present major new challenges in a region.

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