Understanding Brexit: Key Terms To Know

Brexit: United Kingdom Leaving the EU

Brexit can be very confusing, with many terms used on the news that for people following may need addressing, this article will cover some of those terms.

No Deal Brexit

A no deal brexit would mean that the United Kingdom leaves the EU immediately, with no trade agreements in place, meaning the UK would follow the world trade organisation rules for trade to EU countries while negotiating standalone trade deals. A no deal brexit will take place at the end of March if no deal is agreed to before then.

WTO Rules

WTO, which stands for the World Trade Organisation have a set of rules for countries and nations to fall back to if there is no other trade deal in place. Each country sets tariffs – or taxes – on items going into. For instance, cars and trucks passing from non-EU countries to the EU are charged 10% of their value. However tariffs on some farming items are much higher – dairy averages more than 35%.

Transition Period

If a trade deal with the EU is agreed, then a 21 month transition period will take place to allow time the the EU and UK to agree on their future trade relationship, although the UK would have no say in the making of new EU laws during the transition but would have to follow all EU rules, including freedom of movement.#

Article 50

Article 50 is a part of the European Union treaty that all countries agree to when they join, which outlines the way that a country within the EU can leave, with a 2 year time table for leaving once article 50 is enacted.

Another Referendum

Due to all of the controversy with the previous referendum and a lot of the misinformation that was spread, many people want another referendum to take place, so the people can again decide if they want to leave the European Union, with the proposed options being to agree with Theresa Mays trade deal, a hard exit or to remain in the EU.

Free Movement

As part of the EU terms, all members of the EU have free movement to other countries within the EU, which means that EU citizens travel, live, study and work in any member country with there being no discrimination in access to public services and benefits.

Withdrawal agreement

Theresa May has actually concurred a deal with the EU on the terms of the UK’s departure. It does not determine the UK-EU future relationship. It does consist of just how much cash the UK must pay to the EU as a settlement, details of the shift period, and residents’ rights. It also covers the so-called “backstop”, which ensures that no hard border exists in between Northern Ireland and the Republic of Ireland after Brexit even if there’s no deal on the future relationship in place by the end of the transition period.

Those are some of the terms you will hear about brexit in the news, we hope that your new knowledge of what these mean can help you make a more informed decision about your standing on the EU.