The UK’s exit from the European Union on January 31, 2020, marked the beginning of a new phase in UK-EU relations, formally ending with a transition period at the end of 2020. The Trade and Cooperation Agreement, signed in December 2020, established the foundations of future relations: the absence of tariffs and quotas on goods, but with the introduction of customs controls and sanitary checks. For British exporters, this meant an increased administrative burden: according to the British Chambers of Commerce, 42% of small businesses reduced exports to the EU due to the complexity of the new procedures, particularly in the agriculture and food industries.
The Northern Ireland Protocol, and its replacement by the Windsor Framework in 2023, remains the most sensitive aspect of post-Brexit relations. The agreement aimed to avoid a hard border on the island of Ireland while maintaining the integrity of the UK’s customs area. Its practical implementation required the creation of a “green channel” for goods remaining in Northern Ireland and a “red channel” for goods bound for the Republic of Ireland. While the framework has eased tensions within the unionist community, issues of sovereignty and enforcement continue to cause disputes between London and Brussels.
Trade relations have faced unexpected challenges: a shortage of lorries due to the departure of European drivers, a reduction in fresh seafood exports from Scotland due to border delays, and a drop in the import of European specialists for the NHS. According to the Office for National Statistics, trade between the UK and the EU in 2023 was 15% lower than projected under continued membership. However, services—particularly financial services—retained significant market share thanks to equivalence mechanisms, although British banks’ access to European markets has been reduced compared to the single market era. The issue of free movement has fundamentally altered demographic and economic dynamics. The points-based system for immigrants, introduced in 2021, set a minimum wage threshold of £38,700 (from 2024), making it difficult to attract workers to agriculture, hospitality, and social care. Staff shortages in these sectors have led to increased automation and higher wages, but also to the closure of some businesses. At the same time, the UK has stepped up its recruitment of highly skilled professionals from India, Nigeria, and other Commonwealth countries, changing the ethnic composition of immigrants.
Advertising
