You can now follow the latest news for free through our Facebook page
Click here to subscribe
By Christmas Eve last year, the British were bored by Brexit. Business negotiations were still going on, the details were so boring, and the big picture was so confusing that no one wanted to hear about it. Moreover, the epidemic has made divorce between the United Kingdom and the European Union painful and bitter. When an agreement was finally reached, British Prime Minister Boris Johnson announced the victory and praised his brilliant chief negotiator, David Frost.
Now Johnson seems tired. In a June 2016 referendum, Brexit was no longer the prime minister’s trump card, as confirmed by the shock defeat of North Shropshire, where the Conservatives had won nearly 200 years. Criticisms of the Prime Minister’s policies and decisions have been mounting. With a blow, Frost has now resigned. In his resignation letter, Frost urged Johnson to “realize the opportunities that Brexit offers us” – to create an economy with lower taxes and lighter regulation. But Brexit has imposed economic costs and opened new flaws within the Conservative Party, threatening the prime minister’s leadership. Last year, it was embroiled in controversy over the Brexit fish, the immigration crisis and the shortage of truck drivers. . Those talks, which threaten to torpedo the entire trade deal, will last until next year.
In fact, it is difficult to separate the economic impact of Brexit from the effects of the epidemic. But in making some decisions, it matched what neutral observers predicted: the deal was not a catastrophic situation for the economy, but it was easy to hear the sound of air coming out of the wheels.
Brexit was marketed by Britain’s promise that Britain, free from EU laws and regulations, would be able to take its economy out of the boring old world on its doorstep and enter into lucrative free trade agreements that would bring it closer to its massive growth. Asia-Pacific region. Former Secretary of Commerce Lis Truss (who became Secretary of State) was proud of the 70 agreements he had, most of which were renegotiated with the EU.
Based on the new contracts that were actually concluded, they offered very moderate additional benefits. For example, the UK-Australia agreement is still far from achieving the ambitious goal of a “global UK” because it is designed to be implemented in phases over 15 years and will only add 0.02% to the UK economy in the long run. The UK-Japan trade deal is projected to bring in 0.07% of GDP over the next 15 years, according to government estimates. The US-UK trade deal, which has been much talked about, is still a long way off and not on the horizon.
Trade flows have also been affected by epidemics and supply chain disruptions, but it is also clear that trade flows between Britain and the EU have been severely affected by Brexit. Last October, imports to Britain from non-EU countries were higher than imports from the EU for the tenth consecutive month. Similarly, exports to EU countries have declined, while exports to non-EU countries have increased. It is known that the UK economy was initially service-oriented, but services exports to the EU fell twice as fast as services exports to other parts of the world.
David Frost was a politician whose “sovereignty first” position found support among Brexitists in the party, but he did nothing to improve Britain’s post-Brexit position. Johnson now has an opportunity to try a more carefully considered approach to alleviate some of the tensions that have built up over the past year and rebuild relationships. However, leading his party to victory is not easy.
In fact, followers of Boris Johnson’s political path can not underestimate him, but the dilemma he faces is clear: he can not please one side without angering the other, at least not without the highest real development levels. Brexit implementation has been a topic for some time conservatives. But a year later, we now see how divisive Brexit’s effect is.
Published by a special arrangement of the Washington Post and the Bloomberg News Service
“Coffee trailblazer. Social media ninja. Unapologetic web guru. Friendly music fan. Alcohol fanatic.”