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Post- Brexit deal

Topics Covered: Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora.

Post- Brexit deal:


Context:

The UK and European Union have finally agreed a deal that will define their future relationship.

Background:

Ever since the UK left the the EU on 31 January, both sides have been talking about what the new rules should be.

What do we know about the deal?

The deal contains new rules for how the UK and EU will live, work and trade together.

  • No taxes on each other’s goods when they cross borders (known as tariffs).
  • No limits on the amount of things which can be traded (known as quotas).
  • Tariffs: Tariff-free and quota-free access to one of the world’s biggest markets is the backbone of the Brexit deal and goes beyond the EU’s deals with Canada or Japan.
  • Trade: There will be mutual recognition of trusted trader programmes. This means UK producers will have to comply with both UK and EU standards.
  • Professional qualifications: There will be no more automatic recognition for doctors, nurses, architects, dentists, pharmacists, vets, engineers. They will now have to seek recognition in the member state they wish to practise in.
  • Mobility – freedom of movement: UK nationals no longer have the freedom to work, study, start a business or live in the EU. Visas will be required for stays over 90 days.
  • Fisheries: The UK will leave the common fisheries policy.

Why did the deal take so long?

Because so much was at stake.

The EU is the UK’s nearest and biggest trading partner, The UK government says the deal covers trade that was worth £668bn in 2019.

While the UK was in the EU, companies could buy and sell goods across EU borders without paying tariffs.

  • Without the deal, businesses would have had to start paying these taxes, which would have added to their costs.
  • No deal would have also meant even more border checks, which could have caused delays for lorries transporting products.

What happens next?

  • Even though the deal has been agreed, it still needs to be made law.
  • For that to happen it must be looked at and approved by both the UK and European parliaments.

What are the EU and Brexit?

The EU is made up of 27 European countries.

EU citizens are free to live and work in other EU countries, and firms in those countries can buy and sell each other’s goods without checks or extra taxes at borders.

  • The UK was the first country to leave the EU and this was known as Brexit – British exit.
  • Brexit happened because a public vote – or referendum – was held in June 2016, to decide whether the UK should be in the EU- Leave won by 52% to 48% .

InstaLinks:

Prelims Link and Mains Link:

  • Brexit- meaning, key features and impact on India.

Sources: the Hindu.