Effect of Brexit on the UK Economy

Effect of Brexit on the UK savingMany donnish and non-academic writings tackled the issue of Brexit from differentangles. The focus pass on be whiz key aspect of Brexit that is the scotchpart i.e. the effect of Brexit on the prudence of UK after being outside the EU.The UK, political sympathiess White typography (Department for Exiting the European Union) suggestsheadlines of taking the UK out of the EU. In this White Paper, the aspect of the saving is covered on different headings such as protecting the rights of the worker and securing free betray with European markets (The WhitePaper, Policy paper The join Kingdoms exit from, and new partnership with,the European Union, 2017). It reflectshow important this issue is for the UK government, as well as for totally UKpeople. What is clear that in that location will be many positive and ban economic implicationsfor some(prenominal) parties EU and UK after Brexit This essay sheds light on two master(prenominal)issues rela ted to the UK economy after Brexit. out fruit, the foreshadow market, the definition,the status of UK in the home runal market after leaving EU, the expected scenarios.Second, the economic relationships mingled with the UK and former(a) countries of EU.The expected options mentioned here are base on the current relationshipsbetween the EU and some countries that are not wax members of the EU. To start with, what is the intend of the iodine commercialize? According to European Commission website, Single Market indicatesthe EU as one territory that has no internal borders or any other controlling complicationsthat lead to the free movement of stalling services and goods (The EuropeanSingle Market European Commission, 2017). According to the comparablesource, single market has great benefits. It encourages rival and hand,increases efficiency, promotes quality, as well as helps in cutting the prices.In addition, the same source considers the European Single Market as one of theEUs ultimate accomplishments that ply the economic growth and made theeveryday life of European pedigreees and consumers easier (The EuropeanSingle Market European Commission, 2017). Onthe other hand, UK is playing a major role in the single market. Thus, byleaving this market, UK washstand direct this budget to a new direction that suitsits economy better. The UK is stratified in the top five economies in the world,after United States, China, lacquer and Germany (Bajpai, 2017). After Brexit,Bajpai expects the raking of the UK todecline and that UK will be ranked the 7th, taking the endue ofFrance (Bajpai, 2017). Dhingraand Sampson in their article Brexit and the UK Economy, claim that afterleaving the EU, the UK will no longer be constrained by the EUs externaltariff. On the other hand, the UK can set its own MFN1 tariffson imports. The UK could take on to reduce its import tariffs below the levels ofEU in order to turn away import costs for UK consumers and companies . This willresult on increasing the competition played by businesses run in the UK (Sampson, Dhingra and Sampson, 2017). In addition,the same article, states that there is a limited scope for further tariff decreases.According to the cosmos Bank, the tariff rate of the EU (applied and weightedmean for all products) is 1.5% (Word Bank, 2017). Also, if UKgoes for this it will require more harmonising polices, regulations or productstandards across countries. Achieving this level of business requiresinterlanded estateal agreements with different countries. The overall effect of Brexitis still estimated to be negative (Dhingra and Sampson, 2017 4-5). Thesecircumstances make it very difficult for the UK to reduce tariff rates, to that extentpossible. Thesecond essential issue in the UK economy after Brexit is the economicrelationships between the UK and other EU countries. Clarke, Goodwin andWhiteley in their book Brexit Why BritainVoted to trust the European Union, suggested three sce narios regarding therelationship between the UK and other EU countries. They based their expectedscenarios on existing relationships between the EU and non- member states.First scenario, Norwegian option, where Norway is not an EU member state buthas full access to the single market, which is called European Economic Area(EEA), where Norway has to pay for this permit by contributing to the EUbudget as well as accepting free movement of labour. In other words, UK can die EU and pay to access EEA. The second option is based on a mutual agreementwith EU, like Switzerland and Canada. A Comprehensive make do Agreement betweenthe EU and Canada made it possible to lowers tariff barriers, coordinates tradearrangements and encourages cooperation, yet does not include free movement oflabour. The third and nett option is, domain conduct Organization (WTO) that is arisingfrom trade agreements negotiated by the World Trade Organization over manyyears between a massive number of countries th at are aiming to shrink tariffsand other obstacles to trade (Clarke, Matthew and Paul, 2017 176). The tell UK trade options beyond 2019,published by House of Commons, International Trade Committee suggests some ofthe above-mentioned scenarios. The report mentioned some options that the UKmight realise after Brexit. First, No deal-trading down the stairs WTO rules alone.Second, No deal-Trading under WTO rules alone. Third, UK Free Trade Agreementswith non-EU countries. For each option, there are details approximately the expected sequences(Committee, 2017). The internationalranking of UK economy might go backward at the first couples of years afterBrexit until the government makes new trade agreements with different countiesand organisations around the world. Afterwards, the UK economy might go better orworse than before. All the above-mentionedideas are uncertain. It is very clear that the government is working hard toleave the EU will minimum qualifying possible. No one can te ll the exact actionstaken by both EU and UK until the negotiation is over and both the UK and theEU sign the final leaving agreement.Bibliography Bajpai, P. (2017) The Worlds Top 10 Economies Investopedia, 07-07-2017. usable at http//www.investopedia.com/articles/investing/022415/worlds-top-10-economies.asp(Accessed 15 October 2017).Clarke, H., Matthew, D. and Paul, C.(2017) Brexit Why Britain Voted to Leave the European Union. CambridgeUniversity Press. inside 10.1017/9781316584408.009.Committee, I. T. (2017) UK tradeoptions beyond 2019. Available athttps//publications.parliament.uk/pa/cm201617/cmselect/cmintrade/817/817.pdf(Accessed 15 October 2017).Dhingra, S. and Sampson, T. (2017)Brexit and the UK Economy, A series of background briefings on thepolicy issues in the June 2017 UK ecumenic Election, p. 13. Available athttp//cep.lse.ac.uk/pubs/download/ea040.pdf (Accessed 9 October 2017).Sampson, T., Dhingra, S. and Sampson,T. (2017) Brexit and the UK Economy Swati Dhingra and Bre xit and the UKEconomy, (June), p. 14.The European Single Market EuropeanCommission (2017). Available athttps//ec.europa.eu/growth/single-market_en (Accessed 10 October 2017).The White Paper, Policy paper TheUnited Kingdoms exit from, and new partnership with, the European Union (2017). Available athttps//www.gov.uk/government/publications/the-united-kingdoms-exit-from-and-new-partnership-with-the-european-union-white-paper/the-united-kingdoms-exit-from-and-new-partnership-with-the-european-union2strengthening-the-union(Accessed 11 October 2017).Word Bank, T. (2017) EU Tariffrate, applied, weighted mean, all products (%). Available athttps//data.worldbank.org/indicator/TM.TAX.MRCH.WM.AR.ZS?end=2015locations=EUname_desc=truestart=2010(Accessed 13 October 2017).1 MFNmost favoured nation