What is a No-Deal Brexit and Why It is Causing Chaos in the British Parliament

Watching the recent UK news of how the British parliament is getting more chaotic during sessions, makes one interested in knowing what exactly does a No-Deal Brexit signify for the entire United Kingdom.

The long running struggle to arrive either at a Brexit Deal with the European Union or a simple No-Deal Brexit, has in fact resulted in the resignation of original Brexit negotiator, former British Prime Minister Theresa Mary May. Her replacement, Prime Minister Boris Johnson is fighting for a No-Brexit Deal, going as far as kicking out Conservatives who voted to block the no-deal proposition, sending the British Parliament into total chaos.

To add insult to injury, another Tory, Phillip Lee, walked away from the Conservative Party only to defect and join the Liberal Democrats right in the middle of PM Boris Johnson’s speech. According to MP Lee, he is sad to note that

“The Brexit process helped to transform the once great Conservative Party into something more akin to a narrow faction.”

What are the Potential Consequences of a NO-Brexit Deal?

What are the potential consequences of a No-Deal Brexit Deal that they could throw an entire parliament into a state of chaos?

As a result, Ministers of Parliament opposed to the no-deal proposition being pushed by Prime Minister Johnson was able to seize control of the legislative body; allowing them to block legislation that would have seen Britain exit from the European Union with nary an agreement, which is what a no-deal Brexit means.

First off, a ‘no deal exit from the European Union means there is no need for a 21-month transition period for the changes to take effect. Public and private entities in the UK, as well as consumers have to immediately respond to whatever changes transpire without room for making adjustments.

One of the main concerns about a no deal scenario is that life and employment could become uncertain for most Britons and others who reside in the UK. .

In terms of trade, the UK will have to pay the EU tariffs, which in turn could mean higher prices of imported European goods. On the other hand, some UK-made products may be initially rejected by countries belonging to the European Union. Not unless the EU’s required certification and authorization have been satisfied by a UK company.

While Britain would no longer be bound by EU rules, it would have to face the EU’s external tariffs. As a result, the prices of EU imported goods and manufacturing materials will go up in British shops. In light of such developments, some UK-based manufacturers may find it more advantageous to transfer business operations in an EU-member country.

When it comes to movement of people across the UK and EU borders, a separate and new set of immigration controls, which the UK or EU will impose, would mean delays in processing of documents in every border.

Although the UK government will no longer have to pay £13 billion as annual contribution to the EU budget, the British government stands to lose some EU subsidies, such as the yearly £3 billion allotment given to UK farmers. At the moment, since there is still no clear path to take, both the UK and the EU are still bound to honour their financial commitments for the 2019 budget.

The border dividing Northern Ireland and the Republic of Ireland, will likely serve as an external border zone for the EU in case of a no-deal scenario. As physical infrastructure will likely be put in place, in which the enforcement of customs and immigration controls will be heightened at this point.

Yet one of the concessions put forward by the UK Government in the event of a no-deal Brexit is that they intend to carry out negotiations that aim to avoid imposition of hard border rules. Moreover, and even for a brief period, there will be negotiations for new tariffs on goods passing through the borders between the Republic of Ireland and the UK’s Northern Ireland.