After months of tense negotiations, the European Union and United Kingdom have finally come to a post-Brexit agreement according to which the UK has successfully exited the custom union and taken sole control over policymaking. As both sides rejoice this landmark progress, there are still a few clarifications that need to be made.
Many had concerns of a no-deal scenario after Brexit was finalised and its implications for the economic environment of the region. As the UK celebrates its regained autonomy in economic decision making, it must still consider the implications this could have for its service industry which makes up 80 percent of the country’s total economic output. Will the country experience a shortage of workers, more restrictive trade within the EU, more expensive imports, more regulations and unpredictable revenue; these are some of the concerns that remain pertinent now that the final move out of the EU is officially underway.
Similarly, the EU claims that a fair balance has been struck between both the entities considering how fraught the negotiation process was. Claiming that Brexit would have larger implications for the UK instead of the economic bloc, representatives still need to address how they will cope with new competition from across the channel now that one of their main contributors has left the table. It is just as vital for the bloc to create a system that minimises impact substantially especially considering the year that follows will be marred by loopholes within the agreement that will take some more time to fully implement.
Naturally, there is a strong trust deficit between all parties concerned. However, this tension can be resolved if a much more comprehensive deal is made and if both sides adhere to it strictly. Surely, there will be some positives that will come out of it that can be advertised as a win by all involved.