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Brexit: All you need to know about the UK leaving the EU Brexit: All you need to know about the UK leaving the EU
(8 days later)
The European Union (EU) has agreed to extend the Brexit deadline until 31 January 2020. For those not following every twist and turn, this guide covers the basics. The UK is due to leave the European Union (EU) on 31 January 2020, after Prime Minister Boris Johnson secured a majority at the December 2019 general election.
For those not following every twist and turn, this guide covers the basics.
What is Brexit?What is Brexit?
Brexit - British exit - refers to the UK leaving the EU.Brexit - British exit - refers to the UK leaving the EU.
What is the European Union?What is the European Union?
The EU is an economic and political union involving 28 European countries. It allows free trade and free movement of people, to live and work in whichever country they choose.The EU is an economic and political union involving 28 European countries. It allows free trade and 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). If the UK leaves, it would be the first member state to withdraw from the EU.The UK joined in 1973 (when it was known as the European Economic Community). If the UK leaves, it would be the first member state to withdraw from the EU.
Why is the UK leaving?Why is the UK leaving?
A public vote - or referendum - was held on Thursday 23 June 2016, to decide whether the UK should leave or remain.A public vote - or referendum - was held on Thursday 23 June 2016, to decide whether the UK should leave or remain.
Leave won by 52% to 48%. The referendum turnout was very high at 72%, with more than 30 million people voting - 17.4 million people opting for Brexit.Leave won by 52% to 48%. The referendum turnout was very high at 72%, with more than 30 million people voting - 17.4 million people opting for Brexit.
Why hasn't Brexit happened yet?Why hasn't Brexit happened yet?
Brexit was originally due to happen on 29 March 2019. That was two years after then Prime Minister Theresa May triggered Article 50 - the formal process to leave - and kicked off negotiations.Brexit was originally due to happen on 29 March 2019. That was two years after then Prime Minister Theresa May triggered Article 50 - the formal process to leave - and kicked off negotiations.
Under Mrs May, the deadline was delayed twice after MPs rejected her Brexit deal - eventually pushing it to 31 October. Under Mrs May, the deadline was delayed twice after MPs rejected her Brexit deal - eventually pushing it to 31 October 2019.
Despite negotiating a revised deal, Prime Minister Boris Johnson missed the latest deadline, after MPs failed to pass it into law. Despite negotiating a revised deal, Mr Johnson missed the latest deadline, after MPs failed to pass it into law.
The EU agreed to a further extension until 31 January. The EU then agreed to a further extension until 31 January 2020.
Why did Parliament reject Theresa May's Brexit deal?Why did Parliament reject Theresa May's Brexit deal?
The main sticking point for many Conservative MPs and the DUP (the government's ally in Parliament) was the backstop. The main sticking point for many Conservative MPs and the DUP (the government's ally in Parliament at the time) was the Irish backstop.
This was designed to ensure there would be no border posts or barriers between Northern Ireland and the Republic of Ireland after Brexit. 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 it had been needed, the backstop would have kept the UK in a close trading relationship with the EU and avoided checks altogether.If it had been needed, the backstop would have kept the UK in a close trading relationship with the EU and avoided checks altogether.
But many MPs were critical. They said if the backstop was used, the UK could be trapped in it for years. This would prevent the country from striking trade deals with other countries.But many MPs were critical. They said if the backstop was used, the UK could be trapped in it for years. This would prevent the country from striking trade deals with other countries.
Parliament's opposition to the deal eventually led to Mrs May's resignation. After MPs rejected the deal for a third time, Mrs May resigned as prime minister.
What is the new Brexit deal?What is the new Brexit deal?
After taking over as PM in July 2019, Mr Johnson renegotiated parts of Mrs May's deal. After winning the Conservative leadership contest, Mr Johnson took over as PM in July 2019 and set about renegotiating Mrs May's deal.
The backstop has been replaced with new customs arrangements. Once they take effect, the UK would be able to sign and implement its own trade agreements with countries around the world. Mr Johnson succeeded in replacing the backstop with new customs arrangements. Unlike the previous deal, the revised one will allow the UK to sign and implement its own trade agreements with countries around the world.
The revised plan effectively creates a customs and regulatory border between Northern Ireland and Great Britain. This means some goods entering Northern Ireland from Great Britain would have to pay EU import taxes (known as tariffs). However, the revised deal effectively creates a customs and regulatory border between Northern Ireland and Great Britain. This means some goods entering Northern Ireland from Great Britain would be subject to checks and 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).These would be refunded if goods remain in Northern Ireland (ie are not moved to the Republic of Ireland).
As for the rest of the deal, much remains largely unchanged from the one negotiated by Mrs May. Known as the withdrawal agreement, it includes:As for the rest of the deal, much remains largely unchanged from the one negotiated by Mrs May. Known as the withdrawal agreement, it includes:
There are also changes to the political declaration, which sets out plans for the long-term relationship between the UK and the EU. It says this would be based on a free trade agreement.
Why hasn't the new Brexit deal been approved?Why hasn't the new Brexit deal been approved?
Mr Johnson attempted to put his revised deal to Parliament on 19 October. Mr Johnson tried to put his revised deal to a vote in Parliament on 19 October.
However, the vote did not go ahead. MPs chose to postpone a vote on the deal until legislation needed to turn the withdrawal agreement into UK law was completed. However, the vote did not go ahead. Many MPs wanted to postpone it until the legislation needed to turn the deal into law had been approved. MPs said this was to stop a possible no-deal Brexit on 31 October.
It meant Mr Johnson had to send a letter to the EU to ask for another Brexit delay. EU leaders agreed to the request, meaning that Brexit will be pushed back to 31 January. The failure to approve a deal meant that Mr Johnson had to send a letter to the EU to ask for a third Brexit delay. This resulted in the deadline being pushed to 31 January 2020.
The UK could leave before the new deadline, if a deal is approved by the new government after the general election. With Parliament in deadlock, Mr Johnson called for an early general election, to which MPs agreed.
Will a no-deal Brexit cause disruption? The election, which happened on 12 December, resulted in a Conservative majority of 80 and means it should be relatively straightforward to pass Mr Johnson's deal when MPs return to Parliament.
If the UK leaves without a deal, the EU will start carrying out checks on British goods. That is because the UK will leave the customs union and single market overnight. What happens next?
This could lead to delays at ports, such as Dover. Some fear this could lead to traffic bottlenecks, disruption to supply routes and damage to the economy. Once Parliament reopens, the Withdrawal Agreement Bill - the legislation that puts the Brexit deal into UK law - is likely to be introduced very quickly.
Combined with possible sharp falls in the pound, the price and availability of some foods could be affected. There are also concerns over potential shortages of medicines. Assuming the bill passes, the UK will formally leave the EU on 31 January with a deal.
Mr Johnson has tried to calm such fears by announcing an extra £2.1bn of funding to prepare for a possible no-deal outcome. However, this would only mark the next step in the Brexit process. Following its departure, the UK will enter a transition period until 31 December 2020.
Many Brexit supporters say it is hard to accurately predict what will happen, or believe any economic disruption will be short-term and minor. During this period, the UK's trading relationship with the EU will remain the same while the two sides negotiate a free trade deal. At the same time, many other aspects of the UK's future relationship with the EU - including law enforcement, data sharing and security - will need to be agreed.
But most economists and business groups believe no deal would lead to economic harm. If a trade deal is ready in time, the UK's new relationship with the EU can begin immediately after the transition. If not, the UK faces the prospect of having to trade with no agreement in force. This would mean checks and tariffs on UK goods travelling to the EU.
For example, the Office for Budget Responsibility - which provides independent analysis of the UK's public finances - believes a no-deal Brexit would cause a UK recession. Mr Johnson has also ruled out any form of extension to the transition period, meaning the clock is already ticking.