Excited to finally debate with you, Savant!
Background
The United Kingdom (UK) became a part of the European Union (EU) in 1973, in part to avoid economic decline. The UK served many important roles for the EU, including providing its member nations more global reach and pushing for free trade. During this time, the UK had specific opt-outs from certain EU requirements, including adoption of the Euro as their currency and maintaining its own border controls.
In 2016, the Brexit referendum vote was held in the UK where a majority (51.9%) of the population opted to leave the EU. The UK fully departed the EU over the course of the next 4 years, negotiating trade deals with the EU post-exit. As a result, the UK became a “third country,” its relationship with the EU now governed by the EU-UK Trade and Cooperation Agreement (TCA).
Harms
The decision to dissolve this relationship came with a multitude of harms to those in the UK.
The most devastating of these have been economic. Using a combination of micro and macro economic data, a recent study found that leaving the EU cost the UK 6-8% of GDP per capita over the past 5 years. This came in part as a result of a variety of specific impacts, with investments into the UK dropping by 12-18%, employment down 0.5% per year (resulting in a 3-4% reduction in employment growth), and total factor productivity (TFP) growth down by a similar amount. British exports have come down by a fifth, reaching the point that they are behind every single other G7 nation at a fifth of what they were before Brexit. 14% of UK companies gave up selling to the EU due to steep costs and bureaucracy. Customs paperwork alone adds $10 billion dollars a year for exporters costs.
The TCA does not address these harms. Non-tariff measures (NTMs) are huge factors, taking the form of “regulations, standards, technical requirements, licensing requirements, and quotas. They can affect trade in various ways. For example, sanitary and health standards may boost consumer demand, while at the same time increasing the cost of production. This may lead to either an increase or reduction in trade, depending on which effect is stronger.” This has led to huge declines in the variety of products being exported from the UK to the EU, partially explaining the drop-off in exports.
The ground level effects are staggering. A full third of the increased cost of food per household between 2019 and 2023 can be attributed solely to Brexit, adding hundreds of pounds to the cost of groceries for every family. Cost of living for the average household increased by £870 by 2022, and real wages have fallen by an estimated £470. By 2024, the decline in economic growth equated to a cost of £1,000 per household.
Brexit also had a huge impact on migration. Net migration has ballooned in the years after the referendum, but how those numbers break down is where the trouble comes in. Net migration of EU citizens fell in that period, so the vast majority of immigration came from asylum seekers, most of whom entered the country via human traffickers. This is particularly evident in small boat crossings, which increased from 299 to 46,000 between 2018 and 2022.
These impacts are a consequence of Brexit. The UK lost its access to real-time data through EU security databases like SIS II, losing essential capacity for intelligence-led policing and, as a result, making it much more difficult to intercept traffickers at UK borders. Their efforts to shut down legal routes to entry make the illegal backdoor tactics used by traffickers essential for anyone who wants to enter the UK, and the migrants’ reliance on traffickers mean abuses don’t get reported. And since the UK isn’t bound by the EU’s anti-trafficking directive, the UK is effectively creating a pocket of Europe where modern slavery is alive and thriving.
Framework
Any policy direction for the UK should be directed based on what does the greatest good for the most people, with the greatest impacts being those affecting the UK and its citizens directly. As such, my value will be Quality of Life. The emphasis will be on how policy will affect livelihoods within the UK and for those who would become UK citizens.
Model
Simply put, the UK should rejoin the EU. This would not happen overnight, but I’m not going to establish a specific timetable. The two parties would negotiate terms and there would be an agreement for the UK to rejoin under Article 49 of the Treaty of the European Union. While this would mostly just mean a return to form, e.g. meeting the Copenhagen criteria of political stability, economic viability and legal alignment, I acknowledge that doing so would come with concessions from England since they no longer command the veto power they had. Those concessions would be as follows:
- Joining the Schengen area and, thus, allowing passport-free movement from other EU countries to the UK.
- Committing to joining the rest of the eurozone in adopting the euro as their primary currency, which would require phasing out the Pound Sterling as their currency.
Advantage 1: Economic Boons
The UK regains full access to the EU market of 27 countries. No more trade barriers, no extra costs, no paperwork. That accounts for 41% of UK exports and 51% of imports. That combined with restoring its foreign investments will yield substantial economic growth for the UK. It would also get access to a number of global trade agreements through the EU.
- Eliminating NTMs imposed by the TCA, which would correct an estimated loss of 20-42% of export product variety, chiefly affecting small, less diversified firms that can no longer trade with the EU.
- Barriers to investment will also disappear, restoring access to the estimated 12-18% of total investments not garnered as a result of Brexit.
- Car companies could bounce back. The TCA eliminated most tariffs, but stipulations on the “rules of origin,” which require a vehicle’s parts to largely originate in the UK or EU in order to qualify for trade without tariffs, are difficult to uphold, particularly with electric cars where batteries often come from China. And that threshold is rising, forcing carmakers to consolidate, reducing production and increasing costs for consumers. Only by rejoining the EU is this alleviated.
- UK businesses would have seamless access to EU supply chains. Higher costs, widespread among businesses as a result of higher supply chain costs, would quickly be addressed.
Advantage 2: Influence and Security
The UK has lost substantial global and regional influence that it stands to regain through EU membership. This means helping steer EU policy on trade, digital regulation, and climate change. They’re often affected by EU product standards anyway, particularly by General Product Safety Regulations, the CE Mark (health, safety and environmental protection standard) and its disjoints with the UKCA Mark, all resulting in greater costs for UK businesses in terms of time, money and expertise that many small companies do not have. Rejoining the EU would lead to an alignment of these standards and how they’re applied, removing the need for these expensive add-ons. This would also give the UK more heft globally, wielding the weight of the entire EU in trade negotiations so that they don’t have to sacrifice the wellbeing of their farmers and businesses to get trade deals. Just looking at how Brexit has affected the deals the UK has already made with CPTPP, Australia and New Zealand, the UK could recoup as much as £100 billion per year and 4% of their GDP.
The EU facilitates extensive data-sharing and cooperation among European police and judicial authorities (through Europol and the European Arrest Warrant in particular). The UK’s efforts to regain access to much of their data has been denied and, as long as they aren’t in the EU, access they gain is tenuous, data protection rules are in dispute and real-time access to essential data from the SIS II system is impossible. The TCA also led to instability and reductions in EU-UK criminal justice cooperation. Regaining access means more effective cross-border crime fighting and a greater capacity for intelligence-led policing, including access to wide-ranging data on criminal suspects and fast-tracked extradition. Defense funds would also become more available, as the UK would no longer have to engage in failed negotiations to gain access to hundreds of billions of pounds in funding.
Advantage 3: Travel and Labor Rights
Travel to and from the UK gets a lot easier when it can be done passport free. Among other benefits, it precludes the need to deal with other entry systems that both restrict travel and impose delays. Even new systems that don’t require manually stamping passports require that UK citizens pay to get clearance to travel, and travel into the UK is similarly costly. Considering these effects diminished labor demand within the UK by an average of 15.7%, there is a gap in the labor market that is waiting to be filled. Freeing up travel will increase EU net migration to the UK and make it easier to travel into EU member nations given the mutual right to work, allowing free flow of labor in and out of the country that results in vast talent pools, increasing demand for foreign goods, smoother business operations. This also allows many to commute regularly for work and study, the latter particularly through cooperations like Erasmus. This would also free up tourism from the EU, which will in turn result in more money spent within the country.
The benefits also extend to consumers, who will be able to rely on EU protections. In particular, they will have the ability to seek redress from cross-border transactions through the Online Dispute Resolution (ODR) platform and have the protections of the Consumer Protection Cooperation Regulation to ensure authorities abroad work with local authorities. This will stimulate more trade between the UK and other EU nations.
I look forward to Con's case!