The withdrawal agreement has been a hot topic in recent years, especially in the United Kingdom. Its impact on the customs union and single market has been discussed at length by politicians, economists, and experts alike. In this article, we will delve deeper into what the withdrawal agreement means for the customs union and single market.
Firstly, it’s important to understand what the customs union actually is. The customs union is a trade agreement that allows for the free movement of goods and services between member countries. It also sets common external tariffs for non-member countries. The European Union has a customs union, and the United Kingdom was part of it until the Brexit referendum in 2016.
The single market, on the other hand, is an agreement that allows for the free movement of goods, services, capital, and people between member countries. It also sets common regulations and standards for products and services. The European Union has a single market, and the United Kingdom was part of it until its withdrawal from the EU.
Now, let’s talk about what the withdrawal agreement means for these agreements. The withdrawal agreement sets out the terms of the UK’s departure from the EU, including a transition period which ends on December 31, 2020. During this period, the UK will still be part of the single market and customs union, but will no longer have a say in EU decision-making.
After the transition period, the UK will leave the single market and customs union. This means that there will be new trade barriers between the UK and the EU, such as customs checks and tariffs. This could have a significant impact on businesses that rely on trade between the UK and EU.
However, the withdrawal agreement includes a protocol for Northern Ireland which aims to avoid a hard border between Northern Ireland and the Republic of Ireland. This protocol keeps Northern Ireland aligned with EU regulations and customs procedures, effectively keeping it in the single market and customs union.
In conclusion, the withdrawal agreement will have a significant impact on the customs union and single market. The UK’s departure will mean new trade barriers between the UK and EU, but the protocol for Northern Ireland aims to mitigate some of these barriers. The true impact of the withdrawal agreement remains to be seen, but it will undoubtedly shape the future of trade between the UK and EU.
