On January 1, 2021, after a long negotiation, a text of more than 1,200 pages came into force that definitively modified the link between both parties; Britain left the single market and customs union. London gained powers to establish its own regulations and international agreements; but at the same time it lost access to the free movement of capital, goods, services and people from the bloc. It was the end point of a path that began in the 2016 referendum in which the British chose Brexit, a divorce that was formally finalized on January 31 of last year , although both agreed on a transition period that lasted until the end of 2020 to achieve an agreement that regulates trade. For the United Kingdom it was the end of a process in which two different prime ministers participated with dissimilar projects and that still leaves the country divided today. According to analysts, it is still too early to talk about the real impact which coincided with the Covid-19 pandemic, but early indications show that the economy slowed down and many companies moved their headquarters to the EU.

British exports to the European bloc appear to have suffered the biggest hit due to the new border regulations, despite the agreement that guarantees tariff-free trade of goods when they cross borders. According to a recent report from the House of Commons of the British Parliament Even before the agreement came into effect, UK trade with the EU fell sharply in 2020 amid disruptions to international trade caused by the pandemic. Last year, the value of all UK exports to the EU fell by 14%, while the value of imports fell by 17%. Brexit also put great pressure on the relations of Northern Ireland, part of the United Kingdom, with its neighboring Republic of Ireland, a country that remains a member of the EU.

Brussels and London reached an agreement known as the Northern Ireland Protocol that was designed to avoid a hard border and preserve the 1998 Good Friday Agreement that ended decades of sectarian violence between Catholic republicans and Protestant unionists. It prevented merchandise controls from being established between the two Irelands and customs was moved to the entry and exit points to the island of Great Britain that make up England, Scotland and Wales. This caused supply problems, mainly in Northern Ireland, and provoked the anger of unionists who want Belfast not to cut any type of ties with the British Crown. After several threats by British Prime Minister Boris Johnson to break the protocol unilaterally, finally his Government and the EU agreed to kick off the negotiations until 2022. on the issue in an attempt to ease tensions.

It was not the only conflict between the parties: the United Kingdom and France disputed all year over the number of permits granted to French fishing vessels to operate in British waters. Finally, London agreed to grant more licenses, but Paris is pressing to expand them in a dispute that is still ongoing. open. With Brexit, the free movement of people also ended, which is why citizens with a community passport who live in British territory had to register with new documentation to be able to stay and work. This situation meant that more than 1.3 million of EU citizens returned to their countries of origin, which caused a collapse in the production and logistics system of the United Kingdom due to the lack of labor in different sectors. Two months ago, food in supermarkets began to be scarce and Lack of tanker truck drivers caused shortages at service stations.

British employers are also having more difficulties finding candidates in all sectors, both in services and health, and it is believed that this will also worsen. Starting next year there will be more controls on the entry of imported products of the EU, with which it is estimated that the supply problems will deepen. The United Kingdom also now wants to negotiate new trade agreements with countries outside the EU, mainly with the United States.On the other hand, the exit from the European bloc impacted the heart of London where the City is located, one of the most important financial centers in the world, which saw business investment reduced by 11% between 2016 and 2019 due to the start of Brexit. .

Por Agenda Malvinas