The impact of the post-referendum period on the trade between the United Kingdom and the European Union

In the 60-year history of the EU, no member has willingly chosen to end their membership in the Union and triggered Article 50. The United Kingdom Initiated the process of leaving the European Union as a consequence of the referendum, held on 23rd of June 2016. This phenomenon provoked a sense of uncertainty that shifted the priorities of not just the parties involved, but the enterprises and people globally. The repercussions are expected to influence multiple activities in the economic and private channels not only in Europe but vastly across the seas. The prolonged political uncertainty, the risk of no-deal Brexit, and the future relationship between the EU and the UK have changed the expectations for the future and theoretically slowed down the economic activities. The objective of this bachelor’s thesis is to study the possible effects of Brexit on the trade between the United Kingdom and the European Union after the referendum period. Furthermore, the research involves quantifying the uncertainty Brexit has caused. Demarcation was established to limit the saturation of information. As a result of the main trading partners, Ireland, Germany, and the Netherlands were selected with the biggest industries in trade between the EU and the UK, pharmaceutical, and automotive. The following research questions were defined to study the possible effects of Brexit: how the upcoming Brexit has affected the trade between the United Kingdom and the European Union in the post-referendum period, assess the unpredictability created by the decision to exit the EU and does the uncertainty affect the trade volumes with the chosen trading partners in the exchange of goods in the automotive and pharmaceutical sectors. Given the contemporary nature of the subject, the method used to conduct the study was desk research utilizing primary and secondary resources. As only online resources were used, the research materials were examined by using reliability and validity to maintain the quality and credibility of the dissertation. For the data collection, quantitative methods were used as a foundation for the research, and qualitative data was incorporated to provide a more thorough understanding of the subject. The results of the research demonstrate that the uncertainty of the outcome of the United Kingdom’s exit has had an impact on the selected industries and in the UK economy. At the moment, as the phenomenon is still actively in discussion, the impacts are small-scale and have the possibility to remain short-term. The risk of a no-deal situation, disruptions in the supply chains, and restricted access to the EU market have led to contingency planning predominantly in the UK