Autumn Edition 2017

We welcome you to the Autumn 2017 edition of our newsletter. We are pleased to share with you our achievements and our development as a translation vendor.

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Consequences of Brexit on trade between the United Kingdom and the European Union

On 23 June 2016, the United Kingdom decided to leave the European Union after a referendum. This exit from the EU has been called “Brexit”, which stands for “British Exit”. The European Union was notified of this decision on 29 March 2017. From that date, the United Kingdom and the European Union have two years to negotiate the exit, in other words, until 2019. But, what will be the main consequences of this decision made by the British people?

Free movement of people

While the United Kingdom is still part of the European Union, the rules will continue to be the same as the country is not part of the Schengen area. Therefore, in order to travel and work there, an identity document is still necessary to certify that the person is from an EU country.

When Brexit comes into effect, depending on the negotiations, it is possible that a visa may be necessary to travel to the United Kingdom. However, the government probably wants to maintain this free movement in order to negotiate the reciprocal free movement of British citizens in the EU, although, to date, there is still great uncertainty in this respect.

Customs duties

It is possible, and most likely, that shopping in England will be much more expensive in 2019. In fact, customs duties may increase on both sides. The United Kingdom may no longer have access to the European internal market and, as a result, products will be subject to duties when entering and exiting Europe and vice versa. If the country decides to join the EEA, the European Economic Area, and thus maintain access to this market, it will be exempt from customs duties, except in the case of the agriculture and fishing sectors.

Commercial transactions

In the knowledge that half of the United Kingdom’s goods are exported towards the European Union or other countries with which the European Union has agreements, it is very possible that an agreement will be reached to facilitate commercial transactions. In the event that the United Kingdom opts not to sign a free trade agreement, it will have to trade with the EU under the status of “most-favoured-nation”. In this manner, British goods would be subject to standard European external duties, and stricter customs controls.

A country divided

London, Northern Ireland and Scotland all wanted to remain within the EU while Wales and the North of England voted against. This referendum demonstrates the social and cultural diversity between the different regions of the United Kingdom and confirms the euroscepticism present in the North of England and in rural areas in the East. It also highlights the cross-generational gap. In fact, it would seem that over 60% of young people between 18 and 24 years old were in favour of remaining within the EU, while 60% of people aged between 50 and 64 years old voted to leave the EU.