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UK Exits the Single Market, Brexit Officially Takes Effect

by Didimax Team

The UK has officially seceded from the EU. The break-up was marked by the country's exit from the EU's single market and customs union. According to information from AP News and AFP, Brexit finally came true during the new year yesterday. 

The moment comes four-and-a-half years after Britons voted to leave the EU in a 2016 referendum. Britain's departure from the European bloc's single market could also complete the biggest single economic change the country has experienced since World War II. 

A different UK-EU trade deal would provide new restrictions and bureaucracy. However, for those who support Britain's Brexit, this means reclaiming national independence from the E.U. and its rule network. It was a highly anticipated moment.

Now that this agreement has come into force, the community and businesses must begin to adapt. This is because some rules that previously may not have existed should now start running. This adaptation process will obviously take time. 

 

The Long Journey of a Brexit Deal

By law, the UK leaves the EU on 31 January 2020. However, the country is in a transitional period at a time of difficult talks to secure a free trade agreement with Brussels. Finally, an agreement was reached on Christmas Eve.

Now, this transition period is over. This means that EU rules no longer apply and are used by this country. The situation also means that the end of the free movement of more than 500 million people between the UK and 27 other EU countries. 

Customs border checks are also returning for the first time in decades, and despite a free trade deal allowing the UK to resume access to nearly 450 million European consumers, queues and disruption from additional documents are expected.

The British Prime Minister (PM), Boris Johnson, said that Britain's separation from the European Union was an extraordinary moment for his country. With those conditions in place, Johnson said that British freedom was now in their own hands.

The Friendship Between Countries Remains Entwined

On New Year's Eve yesterday, Boris said that the breakup was indeed a special moment. They have freedom in their own hands and it's up to them to make the most of it. The French president also made his comments on this.

Emmanuel Macron gives his opinion on Britain's exit from the European Union. He did regret the decision taken, but Macron insisted Britain remained a friend and ally forever. The country will remain one of France’s best neighbors.

Meanwhile, UK ministers warned that some disruption is likely to emerge in the coming weeks or months. That is because the new rules came into force and British companies trading with the EU agreed to the changes. 

Is the New Border System Ready?

Officials say that the rules and border system are fully ready to go into effect. For information, the UK officially left the 27-member political and economic block on 31 January 2020. They've been there for over three years.

The UK has been stuck on EU trade rules for the past 11 months. There are some points that are difficult to find a deal. Therefore, the two sides continue to negotiate their future economic partnerships. Fishing is one of the most difficult points.

After trade talks ended, a crucial agreement was finally agreed on Christmas Eve. The deal was made into law in the UK on Wednesday after being approved by Parliament. Under that new consensus, UK manufacturers will get the tariff-free access to the  internal market of EU.

That means there will be no import tax on goods crossing between the UK and the continent. However, this means there will be more documents to show especially when entering an EU country. Uncertainty about what will happen to banks and services is also still loathing.

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