Name: Nashra Rehan Rajput

ID: 21-MBA-NBS09
Submitted to: Ma’am Sadia Junejo
Dated: 24-March-2021
 Brexit
Brexit refers to the extraction of the UK from the European Union (EU) a long
running decision from June 23, 2016; which conclusively took place at 11 p.m.
Greenwich Mean Time, on 31 January 2020.

Origin of “Brexit”:
The word ‘Brexit’ is a blend of two words; British and exit, which got on as
shorthand for the recommendation that Britain split from the European Union
and change its relationship to the alliance on trade, security and migration.
Up till now UK is the first and only country to leave the EU, after being a member
for 47 years of this alliance from 1st January 1973. When Britain finally joined the
club and held it’s first referendum on whether to leave less than three years later,
67% of the voters supported to stay in alliance. It was a complex, bitter
negotiation, but they finally agreed a deal on 24 December.

What Changes?
The deal contains new guidelines for how the UK and EU will live, work and trade
together.
While the UK was in the EU, companies could buy and sell goods across EU
borders without paying taxes and there were no limits on the number of things
which could be traded.
On December 24, 2020, the U.K. and the EU struck a provisional free-trade
agreement that ensures the two sides can trade goods without tariffs or quotas.
However, key details of the future relationship remain uncertain.

What’s in the Brexit deal?

Freedom to work and live between the UK and the EU also comes to an end, and
in 2021, UK nationals will need a visa if they want to stay in the EU more than 90
days in a 180-day period.
Northern Ireland will continue to follow many of the EU's rules in order to avoid a
hardening of its border with the Republic of Ireland. This will mean however that
new checks will be introduced on goods entering Northern Ireland from the rest
of the UK.
Now that it's no longer in the EU, the UK is free to set its own trade policy and can
negotiate deals with other countries. Talks are being held with the US, Australia
and New Zealand - countries that currently don't have free trade deals with the
EU.
Citizens' Rights
One of the most politically thorny issues facing Brexit negotiators has been the
rights of EU citizens living in the U.K. and U.K. citizens living in the EU.
The Withdrawal Agreement allows for the free movement of EU and U.K. citizens
until the end of the transition period. Following the transition period, they would
keep their residency rights if they continue to work, have sufficient resources, or
are related to someone who does. To upgrade their residence status to
permanent, they would have to apply to the host nation. The rights of these
citizens can be abruptly taken away if Britain crashes out without ratifying a deal.

Why is leaving such a big deal?

Europe is Britain’s most important export market and its biggest source of foreign
investment, and E.U. membership has helped London cement its position as a
global financial center.
With some regularity, major businesses announced that they were leaving Britain
because of Brexit, or at least threatened to do so.
Had the split been finalized without a deal governing future commercial relations,
businesses feared enormous blockage at the borders and deep uncertainty about
rules of trade across the English Channel.
But even with a deal, the path forward is uncertain. The Office for Budget
Responsibility, an independent official body that assesses the British
government’s economic plans, estimated that economic output in the country
could be 4 percent lower cumulatively over the next 15 years than it would have
been inside the European Union.
 The trade agreement saved Britain from crashing out of the E.U.

British companies have long been able to move goods to and from the European
Union without paying taxes or tariffs. Had the two sides failed to reach a deal
before the Dec. 31 deadline, tariffs would have been imposed, raising the price of
cars considerably and making it much more difficult for British farmers to sell
meat, for example, elsewhere in Europe.

The Referendum:
"Leave" won the June 2016 referendum with 51.9% of the ballot, or 17.4
million votes; "Remain" received 48.1%, or 16.1 million. Turnout was 72.2%. The
results were tallied on a U.K.-wide basis, but the overall figures conceal stark
regional differences: 53.4% of English voters supported Brexit, compared to just
38% of Scottish voters. Because England accounts for the vast majority of the
U.K.'s population, support there swayed the result in Brexit's favor. If the vote had
been conducted only in Wales (where "Leave" also won), Scotland and Northern
Ireland, Brexit would have received less than 45% of the vote.4
The vote's result defied expectations and agitated global markets, causing
the British pound to fall to its lowest level against the dollar in 30 years. Former
Prime Minister David Cameron, who called the referendum and campaigned for
the U.K. to remain in the EU, announced his resignation the following day. He was
replaced as leader of the Conservative Party and Prime Minister by Theresa May
in July of 2016.
Is this finally the end of having to hear about Brexit?
Sadly, no. Decisions are still to be made on data sharing and on financial services,
and the agreement on fishing only lasts five years.
Also, while the UK and EU have agreed to some identical rules now, they don't
have to be identical in the future, and if one side takes exception to the changes,
they can trigger a dispute, which could ultimately lead to tariffs (charges on
imports) being imposed on some goods in the future.
Expect the threat of disputes to be a new constant in UK-EU relations.