LONDON: Brexit is the largest geopolitical move in Britain in decades. What will change and what will stay the same if Britain officially leaves the European Union at 11 p.m. GMT on Friday?
The UK remains a member in every respect, but loses its voice at the meetings in Brussels, which ultimately decide on EU policy on financial services to define a car made in Europe. Prime Minister Boris Johnson is confident of concluding a new trade agreement with the EU in a transition period that starts on Saturday and will run until the end of 2020.
Given the fact that Britain is currently subject to EU rules that it has nothing to say about – and Brexit was sold to voters because Brussels regained control – Johnson has ruled out extending the transition period beyond this year ,
The UK is around 15% of the EU economy and is the largest military capital. The City of London is the international financial capital of the world. But the UK economy is worth about $ 2.7 trillion, while the EU economy is currently around $ 18.3 trillion.
Brussels will try to figure out exactly how Johnson is going to overtake the UK: will he try to build a competitor outside the EU by upsetting the economy and the city of London, or will he seek closer alignment with the EU?
British and EU citizens continue to have the right to live and work in their respective countries until the end of the transition period.
The UK government has told the estimated 3.5 million UK citizens living in the UK that they have at least until the end of December to register to keep their rights.
Johnson has announced that after Brexit, he will introduce an Australian point-based immigration system to deny talented people entry to the country and to deny low-skilled workers entry.
COMPANY AND CUSTOMS
Customs regulations for companies trading with the EU will also remain unchanged until the end of the transition period. The UK duty then applies to goods from the EU as well as goods from other third countries. However, as part of the UK withdrawal agreement with the EU, Northern Ireland, which is ruled by the British, will continue to follow EU rules to avoid a hard border with EU member Ireland, an EU member, that could undermine a 1998 peace agreement ,
This means that there will be no customs controls on the island of Ireland. The UK authorities will be responsible for the application of EU customs legislation in Northern Ireland.
As soon as the United Kingdom officially leaves the EU on January 31, it can negotiate trade agreements with other countries. The European Union – which accounts for about half of Britain's trade – and the United States are the government's primary objectives to secure new trade agreements.
A sticking point in the U.S. talks will be a UK proposal for a unilateral tax on digital services, even though the U.S. is threatening to impose retaliatory tariffs on UK-made cars.
Due to the transition period, the UK's large financial services industry, which deals with customers in the EU, will not change in the next 11 months. All EU financial regulations will continue to apply in the UK until the end of December. Banks, wealth managers and insurers in the UK continue to have unrestricted access to block investors during this period.
The sector's future access to investors in the EU will be one of the first issues to be discussed and should be completed by the end of June. The government will endeavor to have the EU adopt a so-called "equivalence" rule so that these companies can continue trading with the bloc.