by SignalFactory · January 31, 2020 | 07:17:34 UTC
Today there are no trading signals due to the Brexit
The UK will no longer be a member of the European Union (EU) after 23:00 GMT on 31 January 2020.
What
is Brexit?
Brexit
– British exit – refers to the UK leaving the EU.
A
public vote (known as a referendum) was held in June 2016, when 17.4 million
people opted for Brexit. This gave the Leave side 52%, compared with 48% for
Remain.
What
is the European Union?
The
EU is an economic and political union involving 28 European countries. It
allows free trade, which means goods can move between member countries without
any checks or extra charges. The EU also allows free movement of people, to
live and work in whichever country they choose.
The
UK joined in 1973 (when it was known as the European Economic Community) and it
will be the first member state to withdraw.
What
happens after Brexit day?
After
the UK formally leaves the EU on 31 January 2020, there is still a lot to talk
about and months of negotiation will follow.
While
the UK has agreed on the terms of its EU departure, both sides still need to
decide what their future relationship will look like.
This
will be worked out during the transition period (which some prefer to call the
implementation period), which begins immediately after Brexit day and is due to
end on 31 December 2020.
During
this 11-month period, the UK will continue to follow all of the EU’s rules and
its trading relationship will remain the same.
What
needs to be agreed upon?
The
transition period is meant to give both sides some breathing space while a new
free trade agreement is negotiated.
This
is needed because the UK will leave the single market and customs union at the
end of the transition. A free trade agreement allows goods to move around the
EU without checks or extra charges.
If
a new one cannot be agreed on in time, then the UK faces the prospect of having
to trade with no deal in place. That would mean tariffs (taxes) on UK goods
traveling to the EU and other trade barriers.
Aside
from trade, many other aspects of the future UK-EU relationship will also need
to be decided. For example:
Law
enforcement, data sharing, and security
Aviation
standards and safety
Access
to fishing waters
Supplies
of electricity and gas
Licensing
and regulation of medicines
Prime
Minister Boris Johnson insists the transition period will not be extended, but
the European Commission has warned that the timetable will be extremely
challenging.
What
is the Brexit deal?
The
transition period and other aspects of the UK’s departure were agreed upon in a
separate deal called the withdrawal agreement.
Most
of that was negotiated by Theresa May’s government. But after Mr. Johnson
replaced her in July 2019, he removed the most controversial part – the
backstop.
The
backstop was designed to ensure there would be no border posts or barriers
between Northern Ireland and the Republic of Ireland after Brexit. If needed,
it would have kept the UK in a close trading relationship with the EU.
Under
Mr. Johnson’s deal, a customs border will effectively be created between
Northern Ireland and Great Britain. Some goods entering Northern Ireland from
Great Britain will be subject to checks and will have to pay EU import taxes
(known as tariffs).
These
would be refunded if goods remain in Northern Ireland (ie are not moved to the
Republic of Ireland).
Supporters
of the new customs arrangement say it will allow the UK to negotiate its own
trade deals with other countries – something that would not have been possible
under the backstop.
The
rest of the withdrawal agreement is largely unchanged from the one negotiated
by Mrs. May. This includes:
The
rights of EU citizens in the UK and British citizens in the EU (which will
remain the same during the transition).
How much money the UK is to pay the EU? (estimated to be down to about £30bn).
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