Evaluate the international trade dynamic of the UK after BREXIT

Introduction

Brexit is a blend or mix between the words British and exit which is said
to refer to the United Kingdom Government decided in June 2016, A
voting took place to decide whether to leave the European Union (EU)
or not. Which is around 11pm and the result is 51.9% of the people had
voted for the U.K. Government exit from the European Union.

On Dec. 24 in the year 2020, A provisional trade free agreement was

signed between the U.K. and the EU which ensures trade between the
two countries free trade of goods and without any subsidies and quotas.
By making those important details of the relationship in future un
predictable such as the services of trades, Thereby preventing a no deal
Brexit, otherwise would have destroyed the United Kingdom economy
Significantly.

The United Kingdom approved an agreement in their parliament in the

year 2021, which was approved by the European Parliament in the
same year in April 28. Which states that the deal is known as the Trade
and Cooperation Agreement allowing the quota and Trade free goods
between UK and EU which would face customs problems still. This
concludes saying Commerce between the two countries is not at all
easy.

Economic Response of Brexit

Though UK left the EU officially in 2020 there was an implementation

and transition period. The trade and customs are continuing in that time
is very powerful and effective in UK trade so there is usually no much
work in day to day basis that is different to the residents of United
Kingdom economy.

In 2019 the United Kingdom GDP growth drastically slowed down which
took the rate from 1.4% to 1.9 percent in the year 2018 and 2017 as a
result to this investment have fallen heavily in the country. IMF had
already predicted that the economy of the United Kingdom will grow to
1.3 percent in the year 2020 and 1.4 percent in 2021.

A report in the month of July in the year 2018 from the lords house
which was cited that U.K businesses will raise their wage to attract the
workers who are from the native country after Brexit, which is not likely
to lead to higher price in consumer.

The UK market is a single type which is a comprehensive and very deep

trade that aims at reducing the non tariff barriers, As Ebell wrote in
2017,The agreements was signed between the UK and other EU
government, while on other hand agreements seem to be quite un
effective at reducing the nontariff barriers which are considered very
important for trade of services.

Trade of UK-EU after Brexit

The white papers have instructed the UK government that they have
planning to leave the European Union in market and customs. However,
a proposal was proposed for the creation of a trade free area for the
goods which will be avoided by the customs needs and the regulatory
checks at the border and mean the business would not need to
complete and maintain a costly declaration of customs. And it would
allow products to only undergo one set of approval and authentication in
any one of the Markets, before being sold in both the markets. Which
meant U.K will follow EU single market rules regarding goods.

The white papers of the UK informed customs to make a arrangement

without a border was made with the EU (European Union) of which only
one of that had allowed UK to leave and compromise free trading
agreements with that third grade companies.

The United Kingdom is correct in saying that there is no example of the

relationship they have with the Europe. And the four big partners who
existed are of the European Unions’ relationship with Norway country,
Canada, US country and remaining member of The European Union.

Taking Overall, Brexit has led to a significant shift in the UK international

trade dynamics with increased trade barriers and new trade agreements
with the EU. Which remains to be seen how successful the UK will be in
Negotiating new trade deals and maintaining its position as a global
leader of service

Drivers and Barriers of Entry to Major Blocks

After Brexit, UK companies faced a variety of drivers and barriers of

entry to major trade blocks. some of the key factors that have been
influencing UK companies’ ability to enter these markets:
 1. Tariffs and Trade Barriers: One of the primary drivers of entry to
major trade blocks for UK companies is the elimination or
reduction of trade and tariffs barriers. UK companies faced higher
tariffs and other barriers to entry when trading with countries
outside of trade agreements. As a result, UK companies may
prioritize trade blocks with lower trade barriers.

2. Access to Markets: Another key driver of entry to trade blocks for

UK companies is access to markets. Trade agreements can
provide UK companies with preferential access to markets,
allowing them to compete on a more level playing field with local
companies. Access to markets is especially important for service-
based industries that are not subject to tariffs but may face other
non-tariff barriers to entry.

3. Regulatory Alignment: UK companies may also consider

regulatory alignment when deciding while entering to a particular
trade block. If regulations and standards are not similar between
the UK and the trade block, it may be easier for UK companies to
enter and compete in that market.

4. Political Factors: Political factors, such as in government policies

and relationships between countries, cannot also influence UK
companies' ability to enter trade blocks. For example, political
tensions of between the UK and a particular trade block may make
it more difficult for UK companies to enter that market.

5. Cultural and Language Barriers: Cultural and language barriers

cannot also be a barrier to entry for UK companies in certain
markets. Companies’ may need not to invest in language and
cultural training to be successful in these markets.

The drivers and barriers of entry to major trade blocks for UK companies
after Brexit are complex and multifaceted. Tariffs, access to markets,
regulatory alignment, political factors, and cultural and language barriers
all play a role in determining whether UK companies are able to enter
and compete in these markets.

Strategies Being Adopted

After the United Kingdom left the European Union on January 31, 2020,
several strategies have been used to treat the economic problems,
social problems, and political problems, and consequences of Brexit.
Here some of the key strategies of Brexit that have been implemented
in the UK are given below.

Trade agreements: Trade agreements are those which are signed

between two countries for trade dealings between two or multiple
countries, so with countries around the world to replace the trade deals
previously held by the EU. As of now UK has signed deals and
agreements with more than 60 countries including Japan, the US and
Canada, and Australia.

Border controls: Border controls are controls which are kept in order to
restrict and regulate the movement of people and goods between the
multiple countries or neighbouring countries which are surrounded by
the country The UK government has implemented new border controls
to regulate and control the movements of people and goods between
the UK and the EU European Union. This includes customs
declarations, health checks, and other regulatory measures among the
neighbouring countries of UK.

Investment in Infrastructure: The UK government has a kept a lot of

investment in the field of Infrastructure and Real Estate which could
generate them a lot of Revenue in the form of tourists and it would
attract the investors to invest more in the country thereby making it
economically strong in the world so the UK government have
announced plans to invest in new infrastructure projects, such as roads,
railways and broadband, to help support economic growth and job
creation.

Immigration Policy: There will be an Immigration policy for every

country which forms the basic framework of the rules and regulations of
the people who enter in to the country there by making the country safe
and secured from other country people so UK has such immigration
policy which makes them to stand a step above all the countries and
making it one of the key strategy of the country after Brexit. By
implementing a new points based immigration system, which aims to
attract skilled workers from around the world while controlling the overall
level of immigration.

Support for businesses: the UK government had applied one more

strategy by investing in social businesses by giving them support for
their businesses which makes the owners to come out with new idea
confidently there by providing financial support to businesses affected
by Brexit, including grants and loans to help them adapt to the new
trading sectors.

Regulatory ailment: The UK government came up with one more

strategy known as Regulatory ailment to align its regulations with those
of the EU in some areas such as data protection and financial services,
in order to maintain access to EU markets.

Overall, post Brexit strategy in UK is more focused on establishing new

trade relationships, strengthening domestic industries , and adapting to
the changing economic and political landscape of the UK trade markets.

New Emerging Market In UK

There are several emerging markets that the UK could explore after
Brexit. Some potential options are as follows:

1. India: India is top in the list of world's fastest-growing major

economy and is expected to become the third-largest economy by
2030. The UK has strong historical ties with India and could
leverage these connections to build stronger trade relations.
2. ASEAN countries: The Association of Southeast Asian Nations
(ASEAN) is a bloc of ten countries that includes fast-growing
economies such as Vietnam, Indonesia, and the Philippines.
These countries offer significant growth opportunities for UK
businesses looking to expand in the region.
3. Africa: Africa is another country in the list of the world's fastest-
growing economies and has a new and rapidly expanding
populated country. The UK could explore trade and investment
opportunities in countries such as Nigeria, Kenya, and South
Africa.
4. Latin America: Latin America is a region that has historically been
underexplored by UK businesses. However, it offers significant
potential for growth, particularly in countries such as Brazil and
Mexico.
5. Middle East: The Middle East is in the list of the world's wealthiest
countries, such as Bahrain, UAE, Saudi Arabia and the Kuwait.
These countries offer significant opportunities for UK businesses
looking to expand in the region.

Ultimately, the best-emerging market for the UK after Brexit will depend
on a range of factors, including economic growth prospects, political
stability, cultural ties, and ease of doing business. The UK government
will need to carefully assess these factors when deciding which markets
to target.

Conclusion

Brexit has significantly impacted the UK’s international trade dynamic by

introducing changes in trade agreements, regulations and relationships
with other countries. While the UK has been negotiating its own trade
agreements and seeking to strengthen its relationships with other
countries. The introduction of new regulations and border controls has
created challenges and businesses that trade with UK. The long term
impact of Brexit on the UK’s international trade dynamic remains
uncertain, and it will be important for businesses and policy makers to
adapt to the changing landscape of international trade . Ultimately, the
successes of the United Kingdom’s post Brexit international business
strategy will depended on its ability to strike new trade deals and
navigate the complex web of regulations that govern global Trade.

While the UK has been negotiating new trade agreements and

strengthening relationships with other countries, businesses that trade
with the UK have faced challenges due to the introduction of new
regulations and border controls. The long term impact of Brexit on the
UK’s international trade remains uncertain, and it will be important for
businesses and policymakers to continue to adapt to the changing
landscape of global Trade. Ultimately, the non failure of the UK’s post-
Brexit international trading strategy will depended on its ability to
navigate the complexities of international trade and forge new
partnerships with countries around the world.

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