Vicissitudes amongst the UK, India and the EU after implementation of the Brexit contract law

Written by Isha Sharma, a law student

1. Introduction

Brexit refers to the United Kingdom's decision to quit the European Union (EU). The term "Brexit" is a combination of the words "British" and "exit." On June 23, 2016, the United Kingdom held a referendum in which the majority of voters (51.9%) favored leaving the EU. After a lengthy and complex negotiation process between the UK and the EU, the UK officially exited the EU on January 31, 2020.

Brexit has had a substantial impact on the United Kingdom's relationship with the European Union, resulting in changes in trade, immigration, and other policy. The United Kingdom and the European Union negotiated a trade deal to govern their relationship after Brexit, which took effect on January 1, 2021. Brexit has also had an impact on other countries and regions, such as the United States and India, which have close economic relations with the United Kingdom and the European Union. Overall, Brexit marks a significant transformation in the United Kingdom's relationship with the rest of Europe, with far-reaching repercussions for politics, economics, and society.

2. Key differences between the UK and the EU after the implementation of the Brexit contract law

There are fundamentally 5 differences between the UK and the EU after the implementation of the Brexit contract law:

a. Legal jurisdiction: The UK is no longer subject to the jurisdiction of the European Court of Justice (ECJ), which means that UK courts will have the final say on legal disputes arising from contracts involving UK businesses. EU courts will have jurisdiction over contracts involving EU businesses.

b. Tariffs and trade barriers: The UK and the EU have different tariffs and trade barriers, which means that the cost of trading goods and services between the two regions may be higher. The UK has negotiated a trade agreement with the EU to reduce these barriers, but there are still some differences in regulations and standards.

c. Immigration: The UK has introduced new immigration policies, which means that EU citizens are subject to the same visa requirements as non-EU citizens. This could make it harder for EU citizens to work or do business in the UK.

d. Regulation: The UK and the EU may have different regulations and standards for products and services, which could make it harder for businesses to trade between the two regions. For example, the EU has stricter regulations on food and agricultural products than the UK.

e. Financial services: The UK and the EU have different regulations for financial services, which could impact the ability of UK-based financial firms to operate in the EU and vice versa. The UK and the EU are negotiating a separate agreement on financial services to address these issues.

3. Conclusion

Brexit, which translates as "British exit," refers to the decision of the United Kingdom to leave the European Union (EU). The United Kingdom officially exited the European Union on January 31, 2020, with the transition period ending on December 31, 2020. Following this time, the UK and the EU will be subject to separate rules and laws, including contract law, that will regulate their relationship.

The main difference between the UK and the EU after the implementation of the Brexit contract law is that the UK is no longer subject to the EU's laws and regulations. This means that contracts between UK-based businesses and EU-based businesses may be subject to different rules and regulations depending on the jurisdiction in which they are formed.

India, on the other hand, is not directly impacted by the Brexit contract law as it is not a member of the EU nor has a direct economic relationship with the UK through a Free Trade Agreement (FTA). However, Brexit may indirectly impact India's trade relationship with both the UK and the EU, as both markets are important trading partners for India.

In summary, Brexit has resulted in different regulations and laws governing contracts between the UK and the EU. India is not directly impacted by the Brexit contract law, but its trade relationship with both the UK and the EU may be indirectly impacted by Brexit.

Reference

• Murray, C. R. G., and Aoife O'Donoghue. "Life after Brexit: operationalizing the Belfast/Good Friday Agreement's principle of consent." Dublin ULJ 42 (2019): 147.

• Lee, Robert G. "Always Keep a Hold of Nurse: British Environmental Law and Exit from the European Union." Journal of Environmental Law 29.1 (2017): 155-164.

Follow us on LinkedIn, Facebook, and Instagram for more updates.