Breaking Up After 47 Years: Will the UK and EU Become Competitors Instead of Partners?

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] The United Kingdom and the European Union (EU), having completed all ratification stages of Brexit (the UK's withdrawal from the EU), will officially part ways on the 31st (local time). Both sides are beginning to establish a relationship for a rosy future, but given the numerous challenges to be resolved, there is a strong possibility that they will become 'competitors' rather than 'friends' in practice.

The UK will leave the EU at 11 p.m. GMT (Greenwich Mean Time) on this day. During the transition period until the end of this year, both sides will start negotiations on their future relationship covering a wide range of areas including trade, diplomacy, and transportation.

According to foreign media, European diplomatic experts are focusing on the possibility that the UK will become an economic competitor to the EU. Given that the UK has had significant influence on policy decisions within the EU and ranks second in GDP share within the EU after Germany, attention is drawn to the fact that the UK may become a competitor rather than a partner in the global market.

Pascal Lamy, former EU Trade Commissioner, told a major foreign media outlet, "Even if they use kind and diplomatic language, geopolitical and geoeconomic competition will begin," adding, "This will put pressure on both sides." Sarah Hagemann, a professor at the London School of Economics (LSE), also said, "The EU will question whether the UK will be a very close competitor rather than a close partner."

Boris Johnson, the UK Prime Minister, and Ursula von der Leyen, the President of the European Commission, who will sit at the negotiation table, are already exchanging sharp words over trade negotiations. Given the unprecedented nature of the UK's withdrawal from the EU and the need to resolve various challenges each side faces while considering their interests, it is a situation where discussions cannot be conducted in a purely friendly manner.

President von der Leyen faces the task of uniting the new EU and maintaining its influence. In a joint op-ed with Charles Michel, President of the European Council, and David Sassoli, President of the European Parliament, published in the German media outlet 'Frankfurter Allgemeine Zeitung' on this day, she emphasized the need for Europe to come together more closely to protect its interests in the world, highlighting European unity. She noted that economies of scale are helpful in times of high uncertainty. Regarding the relationship with the UK, she added, "I promise to diligently seek new paths so that we can share the future as allies, partners, and friends."

For the UK, which has stepped outside the EU's framework, there are challenges such as conducting trade negotiations not only with the EU but also with the United States and others. Especially in negotiations with the US, many issues are expected to cause difficulties until final agreement, including the Huawei issue related to 5G network equipment, agricultural market access, and digital taxes, where opinions clash. Another challenge is that UK companies may suffer damage during the negotiation process. Michael Gove, the Secretary of State for Environment, Food and Rural Affairs, stated on the 30th, a day before Brexit, that some UK companies could be affected. The Guardian reported that UK companies are likely to face additional paperwork when exporting. The severe political and social division within the UK is also one of the challenges Prime Minister Johnson must address. As internal divisions over Brexit deepen, plans are in place to conduct the Brexit day events as politely as possible.

This content was produced with the assistance of AI translation services.