After nearly four years of heated political debates, negotiations and referendums, January 31 2020 marked the departure of the UK from the European Union.
Known as Brexit ( a portmanteau of ‘Britain’s exit’) this monumental decision has had far-reaching consequences on both European and global politics.
While the immediate focus was on the economic, political and diplomatic shifts within the EU and the UK, Brexit's impact extends well beyond these borders, reshaping diplomatic and trade relations worldwide.
Reconfiguration of Trade Relationships
Arguably, one of the most significant impacts of Brexit was the reconfiguration of trade relations between the EU and the UK.
Prior to leaving the European Union, the UK had access to all the luxuries that other member states had; such as access to the EU’s single market which facilitated seamless trade.
With Brexit, the UK lost automatic access to the single market and customs union, forcing it to negotiate new trade deals independently.
This shift has had varying impacts across different sectors of the UK economy. Industries that relied heavily on EU trade and regulatory alignment have faced particular challenges:
The UK automotive sector, which is deeply integrated with European supply chains, has seen increased costs and delays due to new customs checks, tariffs, and other rules of origin requirements.
Manufacturers once enjoyed seamless access to EU markets however now face the added burden of paperwork, border inspections, and potential tariff barriers on cars and parts, significantly raising costs for producers like Jaguar Land Rover and Nissan.
Additionally, the UK’s agricultural sector has also been hit incredibly hard as a result of Brexit.
British farmers, particularly those in the meat and dairy industries, heavily relied on EU export markets. New export restrictions, sanitary checks, and changing tariffs have led to disruptions in supply chains.
For example, UK farmers exporting beef, lamb, and poultry to the EU have faced delays in processing times, which have led to losses, as well as reducing competitiveness.
Similarly, the fishing industry, which is crucial in coastal regions, has been adversely affected by changes in fishing quotas and the need for licenses to access EU waters.
Technology and pharmaceutical sectors were also not left unaffected as a result of Brexit, with a multitude of additional procedures and costs impacting the efficiency and development of companies.
For tech firms, data protection and privacy laws now differ between the UK and EU, creating additional compliance costs and uncertainty for businesses operating across both regions.
Similarly, pharmaceutical companies face delays in drug approvals due to the UK’s departure from the European Medicines Agency (EMA).
This has raised concerns about the future competitiveness of the UK as a hub for life sciences and biotech innovation.
A study conducted in early 2019 (source Wikipedia), concluded that Brexit would deplete the National Health Service (NHS) workforce, create uncertainties regarding care for British nationals living in the EU, and put at risk access to vaccines, equipment, and medicine.
Despite these challenges, the UK has sought to offset losses by striking new trade deals with countries such as Japan, Canada, and Australia.
While these agreements help diversify the UK’s trade relationships, many are still in the early stages, and the benefits are unlikely to make up for the full economic impact of leaving the EU.
Shifting Global Alliances
Brexit has also altered the UK's position on the world stage: while being a part of the EU, the UK was able to use its position within the bloc to have a greater say in global decisions, particularly on issues like international trade, climate change, and security.
Now, outside the EU, the UK is having to navigate its diplomatic and strategic relationships for itself.
For example, in terms of security, the UK remains a member of NATO and continues to contribute to global peacekeeping and defense efforts.
However, its departure from the EU has led to a shift in its relationship with European neighbors, particularly on issues like intelligence sharing and law enforcement.
While the UK maintains strong ties with the US and Commonwealth countries, its influence within Europe has waned, prompting some to question whether the UK’s “global Britain” ambitions will be as strong as before.
The AUKUS (Australia-UK-US) agreement with the US and Australia in 2021 was framed as a Global Britain success considering it helped cement ties with Commonwealth and transatlantic partners seen as natural alternatives to Britain's European partners (Interview C19).
However, the agreement precipitated a serious rift with France, which lost out when Australia abrogated existing defence-industrial arrangements with Paris (Interview C03). [source : https://academic.oup.com/isq/article/68/2/sqae014/7628797]
Conclusion
Brexit may have been a national decision, but its implications extend far beyond the UK and the EU.
The global political landscape is still adapting to the changes brought about by Brexit, and its effects on trade, diplomacy, and international cooperation will continue to unfold in the coming years.
As the UK seeks to carve out a new role in the world and the EU adjusts to life without one of its major members, the full consequences of Brexit for global politics remain a subject of ongoing debate and analysis.
