[ad_1]
Britain is turning its back on the European Union and also wants to reorient itself in terms of economic policy. The feverish efforts to reach a trade deal with the EU did nothing to change the fact that London is looking for other partners in parallel to cushion the expected economic failures.
Who are these new economic partners for the British?
Canada and the United Kingdom have signed a preliminary agreement to avoid automatic tariff increases after the end of the Brexit transition period. The agreement ensures that applicable tariffs will remain constant until a trade agreement already negotiated between the two countries finally enters into force. Britain has also signed a trade pact with the city-state of Singapore. London plans to join the CPTPP free trade area, which includes the markets of Australia, Canada, Chile, Japan and Mexico on both sides of the Pacific.
Why were the negotiations with the EU so tough until the end? In London, the government was obviously willing to accept huge economic and political handicaps for the concept of “self-determination.” This approach is also supported by a not inconsiderable part of the British population. This has long been underestimated in Brussels, which is also recognized in EU circles. The British no longer wanted to accept EU rules, but that is the prerequisite for fair trade within the EU.
What will change in each case from January 1, 2021?
Tourists from the mainland are still welcome in Britain, but those who want to stay longer, for example because they are studying or looking for work, will need a visa in the future. Freight traffic is definitely getting more complicated, for example, licenses are required for certain foods and certificates of origin for products. The roughly three million EU citizens living in the UK, excluding Irish citizens, must be electronically registered by July 1, 2021.
What does this mean for the Austrian economy?
Great Britain is Austria’s eighth largest trading partner. Some companies will post notable losses after the transition period expires. In the course of the effects of the current crown disaster, this will only play a subordinate role for the time being.
Will the UK economy prosper after the transition period ends?
That’s just a bold thesis. British Prime Minister Boris Johnson repeatedly emphasized that the British economy would prosper even without a deal with the EU. Here, of course, he wanted to strengthen the British position in the negotiations with the EU. Although London is currently entering into free trade agreements with non-EU countries, this cannot outweigh the disadvantages that a lack of barrier-free trade with Europe would bring with it for the foreseeable future.
Britain has been particularly hard hit by the Covid pandemic. Does this have any impact on the post-Brexit process?
Currently, a crown mutation is spreading rapidly in the British Isles. Most of the EU countries reacted immediately and closed their airports to British planes. Heavy trucks got stuck on the roads of Dover and chaos reigned in the English ports. The British had a foretaste of what could happen to them in case they “did not reach an agreement”. Johnson came under increasing pressure to adapt to the EU.
