The good and the bad: Some of the side effects of Brexit you didn't know about
On the one hand cheaper burgers, booze and more home grown footballers in the Premier League.
On the other, the spiralling cost of cars and concerns for eczema sufferers. We look at some of the good and the bad things that could result from the UK leaving the European Union you might not have considered.
More home grown footballers coming through – GOOD
There’s a chance of more Alan Shearers, Stewart Downings and Jordan Hendersons coming through. Under current rules, any player from an EU member state was free to play in Europe while those from outside the bloc have to meet strict criteria to earn a visa. Non-EU players from a country in the top 10 FIFA list have to have played in 30% of international games in the two years prior to the date of application to be granted a work permit. For those lower on the list, the amount increases. However some think the UK will agree trade deals which will still enable European stars to play.
Price of Chilean wine could go up. BAD
British shoppers could face higher prices if the Government fails to strike the right Brexit deal with the EU, the British Retail Consortium (BRC) has warned.
The BRC said that without reaching the right agreement with the EU by 2019, the UK could be forced to use World Trade Organisation (WTO) rules.
Under WTO rules, tariffs on food and clothing could rise sharply, with meat increasing by 27% and clothing and footwear up to 16%.
As a result, a bottle of Chilean which could go up because it would cost 14% more to import.
Wages could go up – GOOD
(Photo: Nick Ansell/PA Wire)
Truth be told there is an argument they could go down but we’re going to be optimistic here.
Pro-EU campaigners suggested that three million jobs could be lost if Britain goes it alone because they are ‘linked’ to Europe. The counter argument is that it was not made clear whether they were ‘dependent’ on being in the EU.
If trade and investment falls now the UK has voted for Brexit, then some of these jobs would be lost – but if they rose, then new jobs would be created.
A drop in immigration would, all else being equal, mean more jobs and less workers to go for them. A labour shortage could mean workers could demand higher salaries. Stuart Rose, former Marks & Spencer chief executive and a prominent pro-EU campaigner, conceded that wages may rise if Britain leaves – which would be good for workers, but less so for their employers.
Eczema sufferers should worry – BAD
If you want to sell pharmaceuticals in Europe, you have to have been cleared by European regulators. While we’re in the EU, that’s the case for the UK too.
A fast, hard Brexit would leave a window between leaving the EU and setting up the UK’s own regulators, it is feared. During that period, drug firms wouldn’t be able to get their products authorised for the UK market, so, for a while, there would be no new eczema creams, asthma inhalers or any other new treatments available to British patients.
Fishing industry no longer held back by strict quotas – GOOD
(Photo: Owen Humphreys/PA Wire)
The fishing industry was delighted by Brexit and expect the withdrawal from the EU will enable Britain to regain control of its waters after decades of “common grazing” rights given to European neighbours. Industry heads say it marks the first real opportunity since quotas were imposed in 1983 to return to “being a world leader in sustainable seafood”.
They now have Norway in their sights. It is the world’s leading producer of salmon and the second largest seafood exporter in the world with annual sales of more than £7bn, compared with the UK’s £1bn.
Car prices go up – BAD
Brexit could see the cost of cars in the UK imported from Europe soar by £1,500, according to a recent report.
Analysis by trade body the Society of Motor Manufacturers and Traders (SMMT) warned that the list price of imported vehicles could soar if the cost of import tariffs are not absorbed by brands and retailers.
The UK’s decision to withdraw from the EU could add at least £2.7bn to imports and £1.8bn to exports each year, the SMMT predicted.
Burgers could become cheaper – GOOD
A bilateral trade deal with the US would see cheaper burgers in the UK. The Americans have lower animal-welfare standards, use growth hormones in their meat and have larger farms. This won’t be good news for British farmers, who will also be facing sky-high export tariffs and a possible end to subsidies. And it won’t be good news for animal rights campaigners. But burger lovers might be pleased. OK, a heavily qualified ‘good’.
Fall in house prices – BAD and GOOD
Mark Carney, governor of the Bank of England, said a vote for Brexit “could possibly include a technical recession”, and said that mortgage costs for homeowners could rise even if the Bank cut interest rates to boost demand.
If there is a recession and banks won’t lend, or if buyers lose confidence in the market, there will be less demand and therefore prices will come down. However the affect, if it happens, will be less in the North East where house prices have remained stable compared to London where they have rocketed.
It’s good news for those looking to get on the property ladder, of course.
Home grown tourism could increase – GOOD
With the cost of holidays going up aborad, ‘staycations’ are already on the increase. And in the North, with a wealth of attractions and beautiful places to visit the region is sure to benefit. And with the value of sterling having fallen it makes it cheaper to come here for foreign visitors.
Emigrating to an EU country will become more difficult – BAD
(Photo: Anthony Devlin/PA Wire)
Dominic Grieve, a former attorney general, has argued that British expats could in theory become illegal immigrants overnight if Britain does not maintain some form of freedom of movement as part of its settlement with the EU. But few see mass expulsions as a realistic possibility.
Some lawyers have argued that British expats living in the EU at the time of Brexit would have “acquired rights” under the 1969 Vienna convention on the law of treaties. Others, though, say these might not extend much beyond residency and property rights – and could well exclude rights to benefits, pensions and healthcare.
New arrivals might soon face stricter residency requirements, particularly if Britain imposes similar criteria on incoming EU nationals, and it is likely that existing expats, too, would at the very least face new administrative arrangements, possibly including residency and work permits, even higher property taxes.
The return of Duty Free and cheap booze – GOOD
Back in 1999, outlets in duty free zones in airports, on planes and in train stations and ports were banned from selling wine, spirits, beer , cigarettes and perfume free from taxes for travellers moving between EU countries.
Since then Brits have only allowed to buy the cheaper goods if your final destination is outside of the EU.
As with most Brexit consequences, whether this will happen depends on how negotiations with the EU play out – whether the “customs union” agreement between Britain and the EU is ended or continued. But here’s hoping.