BREXIT and the way ahead

  • The 11-month transition period during which the UK and the European Union were supposed to negotiate the nature of their post-Brexit economic relationship will come to an end on December 31. 
  • The two sides have struck a trade and co-operation deal.
  • The new agreement which was unanimously approved by the EU nations will come into effect from January 1.

CHANGES

  • The UK will leave the EU Single Market and Customs Union (under the customs union the UK could not negotiate with other member nations of the EU separately), all EU policies and international agreements. 
  • This means that the free movement of goods, people, services and capital will stop from January 1 onwards as the EU and UK will become two separate market spaces, with distinct regulations.
  • As part of the free trade agreement, the UK and EU have agreed to a 100 per cent tariff liberalisation, which means that there will be no tariffs or quotas on goods that move between the UK and EU. 
  • The agreement is based on international law and not on EU law. 
  • This means the European Court of Justice can no longer play a role and the UK does not have to follow EU law.

FISHING WATER

  • The UK will have sovereignty over its fishing waters which was one of the major sticking points during negotiations. 
  • The UK will leave the EU’s Common Fisheries Policy on December 31.
  • However, the current rules will remain largely in place during the transition period that will last over five years. 
  • This means European boats will continue to get more access to the UK’s fishing waters and the two parties will jointly manage the fish stocks in EU and UK waters.
HISTORY
  • David Cameron had announced that he will hold a referendum on the UK’s membership of the EU if his party won the 2013 general elections. 
  • After Cameron was voted in for a second term, the European Union Referendum Act, 2015 was passed and the referendum was held in June 2016.
  • The first public vote on Brexit happened on June 23, 2016, when 52 per cent of voters chose to leave the EU.
  • Cameron resigned a day after the referendum since he supported the UK staying in the EU. 
  • He was succeeded by Theresa May.
  • Brexit was meant to happen on March 29, 2019.
  • The date was two years after May had triggered Article 50, which officially signified the decision of the UK to leave the EU.
  • The March 29 deadline was delayed twice after MPs rejected the withdrawal deal negotiated by May with the EU.
  • After the MPs rejected the deal for a third time, May resigned and was succeeded by Boris Johnson.

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