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Jul 255 min read

Brexit

THE UNITED KINGDOM

The United Kingdom, as defined by Dictionary.com, is “a kingdom in NW [northwest] Europe, consisting of Great Britain and Northern Ireland: formerly comprising Great Britain and Ireland.” 


Of course, some people think that the UK and Britain are the same things, while others think they’re two completely different things entirely. However, according to What’s The Difference Between Britain, England And The UK? (babbel.com), Britain is the landmass where England is, England is one country, and the United Kingdom is four countries united together. 


One of the major events in recent years involving the UK would be Brexit. Let’s dive into that.



THE DEFINITION OF BREXIT

According to Oxford Languages, the official definition of Brexit is “the withdrawal of the United Kingdom from the European Union.” It’s a rather brief interpretation, but it sums it up in ten neat words.


Brexit is the abbreviation of the two words, ‘Britain’ and ‘exit.’ The word refers to the exit of Britain from the European Union on January 31, 2020 — although the official ‘transition period’ didn’t finish until New Year’s Day of the next year, and as of then, UK-EU relations are subject to the policies listed in the “Trade and Cooperation Agreement.”


THE TRADE AND COOPERATION AGREEMENT

The Trade and Cooperation Agreement is an extensive document that lists the protocols that should be followed regarding four topics: free trade between the UK and EU, the framework for economic, social, and environmental cooperation, internal security matters, and a common governance framework. 


THE WITHDRAWAL AGREEMENT

The Withdrawal Agreement established the arrangements for the departure of the United Kingdom from the European Union (as well as from the European Atomic Energy Community) and was first agreed upon by ambassadors on November 14, 2018 and was supported by the European Council 11 days later. However, following a shift in the British government, the content of the agreement was amended — more specifically toward the Protocol on the Republic of Ireland/Northern Ireland. The negotiators came to a new consensus on October 17th, 2019 and the document was approved by the European Council that same day. By January 24th of the next year, both the EU and the UK had signed the agreement and it was put into action on February 1st.


THE TRANSITION PERIOD

The Transition Period lasted from February 1st, 2020 to January 1st, 2021. It was the time span in which the acquis communautaire (the body of law accumulated by the European Union) of the EU would continue to pertain to relations between the EU and the UK. The duration could’ve been extended once for a year or two, but this would’ve had to be agreed upon by the Union and the UK before July 1st. Notwithstanding, the UK dismissed the prospect before the deadline. (Source: La Moncloa. What is Brexit?) 


HOW DOES THIS IMPACT AMERICA?

According to Thomson Reuters, “for US companies, the complexity of these new agreements means that organizations of all sizes must re-evaluate every detail of their UK/EU business arrangements — from supply chains, logistics, and manufacturing to inventory, taxes, customs declarations, and distribution. Understanding the new rules and complying with them will be imperative to avoid any unpleasant surprises.” 


Which, in prose, means that companies in the United States will have to reexamine every aspect of their current business protocols with both the United Kingdom and the European Union to make sure they don’t violate any regulations the Withdrawal Agreement may have created. 


Furthermore, Thomson Reuters states that “for US companies, however, Brexit represents a mixed bag of aggravations and opportunities.” So, the United States could both stand to gain and to lose from Brexit. “Companies the world over have been speculating about the impact of Brexit for nearly five years. Now that most of Brexit’s mysteries have been revealed, it is up to individual businesses to find ways to make this new reality work for — rather than against — them.”


According to the Congressional Research Service (U.S.-UK Trade Relations), “in 2020, the UK was the United States’ seventh-largest goods trading partner by country, and its largest services trading partner. The UK comprised 5% of total U.S. trade, and the United States was nearly one-fifth of total UK trade (see Figure 1).


Brexit opened up the possibility of a U.S.-UK free trade agreement (FTA). The two countries held five negotiation rounds in 2020, but did not reach a final FTA. For the UK, a trade deal with the United States has been a major priority to showcase its post-Brexit competitiveness.” So Brexit could impact the States’ trading relations with the U.K. as well as with the countries of the European Union.



CURRENT UNITED KINGDOM-UNITED STATES RELATIONS

According to History of the U.S.-UK Special Relationship and U.S. Policy, “the United States has no closer ally than the United Kingdom, and British foreign policy emphasizes close coordination with the United States. Bilateral cooperation reflects the common language, ideals, and democratic practices of the two nations.”  


Since it departed from the European Union, one of the United Kingdom’s goals has been to strengthen its relations with the US — and most analysts believe they’ll succeed. They predict that the countries will remain allies that collaborate on many issues, whether diplomatic, economic, or security-related. 

Notwithstanding, Brexit has created controversy concerning the U.K.’s international influence. Some say that it will broaden, while others say it will decline. President Biden and his associates have a skeptical mindset, but many believe the administration will be hoping for some logical collaboration with both the U.K. and the E.U. 

 

Meanwhile, the United Kingdom sustains its alliance with the US. However, post-Brexit advancements regarding its global role will likely have an impact on the US’s view of the U.K. as a colleague. 


According to The United Kingdom: Background, Brexit, and Relations with the United States (also my source for the majority of this heading), “the U.K. is likely to remain a strong U.S. partner, and Brexit is unlikely to cause a dramatic makeover in most aspects of the U.S.-UK relationship. Analysts believe that close U.S.-UK cooperation will continue for the foreseeable future in areas such as counterterrorism, intelligence, economic issues, and the future of NATO, as well as on numerous global and regional security challenges.” 


SUMMARY

In conclusion, Brexit has had a big impact – apropos within the United Kingdom. It hasn’t really made much of a bang with regard to its relations with the United States…yet. As of 2022, it’s only been in effect for a little more than a year. It’s hard to predict the long-term effects of this breakaway from the E.U, but one thing’s for sure – it’ll be something interesting to observe, especially with the beginning of the reign of Prince Charles following not far behind. 








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