Was Leaving the European Union the Right Decision for the UK?
by Dawda Njie
The United Kingdom joined the European Economic Community (EEC), now known as the European Union, in 1973. However, on the 20thof February 2016, former UK Prime Minister David Cameron announced that an in/out referendum would be held on the 23rdof June, to determine if the UK will leave or remain in the European Union. The turnout for the referendum was 72.2%, which is more than 30 million people, resulting in the 鈥淰ote Leave鈥 campaign鈥檚 victory by a 51.9% margin (EU Referendum Results). Although referendums are not binding by parliament, given the high turnout the Conservative party would not defy the British public. Despite the fact that more Conservative party members of parliament, known as MPs, backed Remain. Former Mayor of London Boris Johnson and former Justice Secretary Michael Gove lead the Leave Campaign. Whereas, David Cameron himself and majority of the Labour Party MPs backed Remain ahead of the referendum (General Election 2017: Where UK鈥檚 Parties Stand on Brexit). The UK鈥檚 current Prime Minister Theresa May triggered Article 50 of the Treaty of Lisbon which officially became law December 2009. Article 50 鈥済ives any EU member state the right to quit unilaterally and outlines the procedure for doing so. It gives the leaving country two years to negotiate an exit deal and once it鈥檚 set in motion it can鈥檛 be stopped except by unanimous consent of all member states,鈥 (Midgley, James Rothwell; Robert). Since article 50 was triggeredMarch 29 earlier this year the UK will engage in a 2-year negotiation with the EU and officially leave on March 29, 2019. However, the United Kingdom鈥檚 upcoming departure from the EU has proven to be more detrimental than it has been beneficial as the Leave Campaign has already failed to deliver on some of many ambitious promises that Brexit will foster. As a result, leaving the EU was the wrong decision for the UK.The main debating topics are the cost to the British economy, trade with the EU, EU migration and Parliamentary sovereignty.
The EU membership cost was a highly debated topic before the referendum. Brexiters (those in favor of going through with Brexit/leaving the EU) argued that the UK spent too much money on the EU. The Office for National Statistic (ONS) defined as 鈥渢he UK鈥檚 largest independent producer of official statistics and the recognised national statistical institute of the UK鈥, revealed that in 2016, the UK鈥檚 gross contribution to the EU was 拢18.9bn ($26.5bn), which accounts for approximately 2.3% of the government鈥檚 total expenditure. 鈥淗owever, this amount of money was never actually transferred to the EU.鈥 This is because of the rebate (annual reduction in contributions) called the Fontainebleau Abatement which was successfully negotiated by former Prime Minister Margaret Thatcher in June 1984. In 2016, 鈥渢he UK received a rebate of 拢5 billion鈥 ($7bn) cutting the payment to 拢13.9bn ($19.5bn), but this doesn鈥檛 account for 拢4.4bn ($6.2bn) that 鈥渃ame back to public sector and private sector in credits in 2016.鈥 This also included the 鈥溌359 million that came back through the European Regional Development Fund and 拢2.4 billion through the Agricultural Guarantee Fund.鈥 Although it may seem bad at first glance, 鈥渢he difference between the money it paid to the EU and the money it received 鈥 was 拢9.4 billion ($13.2bn) in 2016 as compared with the 拢18.9 billion gross contribution.鈥 (The UK Contribution to the EU Budget). Therefore, the economic benefits of being a member of the EU easily outweighs the cost because aside from the membership cost the UK receives grants that redistributes money to develop poorer regions and subsidizes farmers.
One of the main slogans for the Vote Leave campaign was that the 拢350M ($490M) a week that was spent on the EU membership fee would be spent on the NHS (National Health Service), which was at the time facing budgetary restraints. One of the lead spokespersons for the leave campaign, former UKIP political party leader Nigel Farage, was interviewed by ITV鈥檚 Good morning Britain, where he was asked whether he could guarantee that the 拢350M would now go to the NHS, he replied, 鈥渘o, I can鈥檛 I would never have made that claim.鈥 He then went on to say that it was one of 鈥渢he mistakes made by the leave campaign鈥. (Morgan, Kate McCann;Tom). This is an example of how the leave campaign failed to keep one of their many ambitious promises to brexiters, and the people who the managed to convince to switch from the Remain campaign to the Leave campaign.
Great Britain has put itself at a huge trading disadvantage as a result of Brexit, as well as, causing an economic downturn. However, some brexiters will argued that 鈥淯K companies would be freed from the burden of EU regulations鈥 and 鈥渢rade with EU countries would continue because we import more from them than we export from them鈥. Their main argument is that 鈥淏ritain would be able to negotiate its own trade deals with other countries鈥 such as USA, China or India therefore leaving the EU single market would enable the UK to diversify its products and its international links (UK and the EU). But the reality is that both UK consumers and businesses benefit from free trade with the EU because the EU is a customs union/single market; this makes trade between member states quicker and easier by enabling businesses to export goods and services to other EU member states tariff free, which is the essence of free trade. UK consumers can also benefit from free trade because UK businesses now not only compete amongst each other but now compete with all other EU member state businesses therefore businesses are forced to either lower their prices or compete by means of non-price competition such as increased quality of goods through innovation. Due to increases in competition, UK consumers benefit from cheaper prices, higher quality and more variety of goods to choose from.
In 2016 鈥淯K exports to the EU were 拢236 billion, 43% of all UK exports. UK imports from the EU were 拢318 billion, 54% of all UK imports鈥 (Ward, Matthew, and Dominic Webb). The ONS official statistics show that in that same year the top 3 countries the UK imported from were Germany (拢75.1bn/$105.3bn), United States (拢66.3bn/92.9bn) and Netherlands (拢42.4bn/$59.4bn). This data shows that the UK imports more from fellow EU member state Germany mainly bringing in Germany cars to the UK. Therefore this proves that EU trade is vital to the UK as 鈥済oods imports from the EU were worth more than imports from the rest of the world combined.鈥 (Who Does the UK Trade With) compared to the top export destinations which are The United States (拢99.6bn/$139.5bn), Germany (拢49.1bn/$68.8bn) and France (拢33.8/$47.4bn) (Who Does the UK Trade With). The fact is that the UK imports more from the EU than it exports; almost half the UK exports are conducted with the EU. This proves that the UK is still dependent on the EU. This shows that the UK will still need to trade with the EU once the UK departs in 2019. However, with no free trade, tariff chargers will now apply to UK exports, which equates to higher cost for UK businesses and higher prices as well as less variety of goods and services for consumers. Furthermore, the argument about freeing business from EU regulation does not stand as the UK would still have to apply EU rules to retain access to the single market. Therefore, the UK would have been better off remaining in the EU (UK and the EU).
Another controversial topic of discussion was about immigration and border control. Brexiters argued that the UK needed to leave the EU to have more control over its borders. This is because being a member state of the EU not only includes free trade but also includes free movement of labor, meaning that workers of other member states can move to the UK without a VISA, work permit, or any other restriction hence the phrase free movement. This is the reason why Brexiters argued that 鈥渋t is impossible to control immigration as a member of the EU鈥 and now as a result 鈥減ublic services are under strain鈥 due to EU migrants. The government has a target for total net migration set at 100,000 per year. However, total net migration is running at over 300,000 a year (UK and the EU). Brexiters also argued that EU migrants are taking away British jobs and driving down wages because when the supply of workers in an economy begins to exceed to the level of existing demand for labor, this then creates a surplus of workers, which drives wages down because there are more people without jobs who are willing to work for lower wages, therefore this gives business less of an incentive to increase wages to attract more workers. For example, if the national minimum wage is higher in the UK compared to another member state, then it makes sense for low paid workers of that member state to move to the UK so they can earn more income. This can be seen between 2013-2016, where EU workers in Britain rose 鈥渇rom 1.4 million to 2.1 million鈥. (Travis).
In 2016 official figures revealed 鈥渘et migration from EU countries at 184,000 a year and non-EU at 188,000鈥 (UK and the EU. BBC). This proves that there are more non-EU migrants in the UK, so most of the strain that brexiters are so concerned about is not being cause by EU migration. Therefore, leaving the EU would not directly stop EU migration but only slow it down and allow the UK to have more control over who comes in and out through VISAs and work permits. The UK actually benefits more than it suffers from EU migration thanks to the highly skilled EU migrants. This is because 鈥渋mmigrants, especially those from the EU pay more in taxes than they take out.鈥 (UK and the EU). This is another example of how Brexiters were sold false truths and ill-informed about how EU migrants contribute to the UK economy.
Parliamentary sovereignty is the principal that parliament is the ultimate source of all law and there is no higher legal authority (UK and the EU). Brexiters argue that remaining in the EU would undermine the UK鈥檚 Parliamentary Sovereignty as 鈥淓U regulation are binding across all member states鈥. Therefore, the UK is subject to EU laws which are enforced by the European Court of Justice (ECJ), however, the majority of the laws in the UK are parliamentary laws whereas 鈥渙nly a minority of UK laws derive from the EU鈥 (UK and the EU. BBC). This means that the EU does not really undermine parliamentary sovereignty to a significant degree as Parliament still remains the main legislator and law maker in the UK. Therefore, leaving the EU for parliamentary sovereignty didn鈥檛 really make that much of a difference in terms of parliament鈥檚 law-making power in the UK.
To conclude, yes, it is true that leaving the EU means that the UK will no longer have to pay a membership fee of 拢350M a week, which can be now spent elsewhere. The UK will also now be free to negotiate its own trade deals with other countries to diversify its international links. The UK will also have more control over EU migrants crossing the border control and true Parliamentary sovereignty will be restored. However, the UK will no longer receive grants and subsidies for UK farmers from the EU and the Leave campaign have already failed on their promise to spend the extra 拢350M a week on the N.H.S. Also, UK business will no longer be able to sell their goods tariff free to other member states. Consumer will no longer benefit from a greater variety of choice and cheaper goods. Furthermore, despite being able to negotiate new trade deals the UK will not be at a position of strength in the negotiation table because the EU still remains their biggest trading partner and other countries like the US or China do not need this trade deal as much as the UK, so they can use this to their advantage. Having more control over EU border doesn鈥檛 stop EU migration it only slows it down, and there are more non-EU migrants that cause most of the strain on public services. Finally, on the issue concerning parliamentary sovereignty, only a minority of UK laws are EU laws, which means the UK has not really made a significant gain in law making power. Therefore, as a result the United Kingdom are losing out more that they will gain, which is why they made the wrong decision to leave the European Union.
Works Cited
鈥淓U Referendum Results.鈥 BBC News, BBC, . Accessed 7 Nov. 2017.
General Election 2017: Where UK鈥檚 Parties Stand on Brexit.鈥 BBC News, BBC, 1 June 2017, . Accessed 27 Mar. 2018.
Midgley, James Rothwell; Robert. 鈥淲hat Is Article 50? The Only Explanation You Need to Read.鈥 The Telegraph, Telegraph Media Group, 9 Jan. 2018, 27 Mar. 2018.
Morgan, Kate McCann;Tom. 鈥淣igel Farage: 拢350 Million Pledge to Fund theNHS Was 鈥榓 Mistake鈥.鈥 The Telegraph, Telegraph Media Group, 24 June 2016, . Accessed 7 Nov. 2017.
鈥淭he UK Contribution to the EU Budget.鈥 Office for National Statistics, 31 Oct. 2017, 鈥濃 27 Mar. 2018.
Travis, Alan 鈥淎re EU migrants really taking British jobs and pushing down wages?鈥. The Guardian, 20 May 2016, . Accessed 7 Nov. 2017.
鈥淯K and the EU: Better off out or in?鈥, BBC NEWS, 28 March 2017, . Accessed 7 Nov. 2017.
Ward, Matthew, and Dominic Webb. 鈥淪tatistics on UK-EU Trade.鈥 Commons Library Briefing 鈥 UK Parliament, 7 Nov. 2017, researchbriefings.parliament.uk/ResearchBriefing/Summary/CBP-7851. Accessed 27 Mar. 2018.
鈥淲ho Does the UK Trade with?鈥 Office for National Statistics, 3 Jan. 2018, 27 Mar. 2018.