Having called the national referendum, Prime Minister Cameron initiated negotiations with EU officials about the future of the United Kingdom's continued participation in the regional bloc. His goal was to convince the EU to make certain concessions that would make the "Remain" option more appealing to voters. Among the reforms was a measure to restrict welfare benefits offered to certain EU nationals coming to the United Kingdom. For the most part, politicians, diplomats, and institutions outside the United Kingdom were lending their voices to the "Remain" argument. For example, U.S. President Barack Obama, plus the leaders of Canada, New Zealand, and Australia, all urged voters to cast "In" ballots. In fact, on a visit to London in April 2016, Obama disagreed with the view that an "Out" vote would allow Britain to play a bigger role in the global arena. In fact, the U.S. president said, being part of the EU actually amplified Britain's voice around the world. In lieu of EU membership, several alternative options would be available to the United Kingdom. First, the United Kingdom could retain privileged access to the EUS single market by joining Iceland, Lichtenstein, and Norway in the European Economic Area (EEA). Second, the United Kingdom could enter into a bilateral free trade agreement with the EU, Canada has a similar arrangement. As a third option, the United Kingdom could pursue trade with the EU under its current membership in the Worid Trade Organization. Would allow Britain to play a bigger role in the global arena. In fact, the U.S. president said, being part of the ev actually amplified Britain's voice around the world. In lieu of EU membership, several alternative options would be available to the United Kingdom. First, the United Kingdom could retain privileged access to the EU's single market by joining Iceland, Lichtenstein, and Norway in the European Economic Area (EEA). Second, the United Kingdom could enter into a bilateral free-trade agreement with the EU; Canada ha a similar arrangement. As a third option, the United Kingdom could pursue trade with the EU under its current membership the World Trade Organization. Those in the "Remain" camp argued that any of these alternatives would result in substantial decrease in the United Kingdom's GDP. The U.K. Treasury's chief economist produced reports on the short-term and long-term impact of a "Leave" vote, factoring in the various alternatives. George Osborne, the Chancellor of the Exchequer (as the U.K. finance minister is called), said that in the worst-case "Leave" scenario, more than 800,000 jobs could be lost in the long term. In the short termtwo years after leaving 520 , 000 jobs would be lost. The Treasury report estimated that annual economic output would fall 6.2 percent under the free trade agreement option. Thus, by 2030 , the average British households would be worse off by an estimated E 4 , 300 ( $6 , 665 ) Despite these warnings, some politicians from Cameron'.

1. Having called the national referendum, Prime Minister Cameron initiated negotiations with EU
officials about the future of the United Kingdom's continued participation in the regional bloc.
His goal was to convince the EU to make certain concessions that would make the "Remain"
option more appealing to voters. Among the reforms was a measure to restrict welfare benefits
offered to certain EU nationals coming to the United Kingdom. For the most part, politicians,
diplomats, and institutions outside the United Kingdom were lending their voices to the
"Remain" argument. For example, U.S. President Barack Obama, plus the leaders of Canada,
New Zealand, and Australia, all urged voters to cast "In" ballots. In fact, on a visit to London in
April 2016, Obama disagreed with the view that an "Out" vote would allow Britain to play a
bigger role in the global arena. In fact, the U.S. president said, being part of the EU actually
amplified Britain's voice around the world. In lieu of EU membership, several alternative options
would be available to the United Kingdom. First, the United Kingdom could retain privileged
access to the EUS single market by joining Iceland, Lichtenstein, and Norway in the European
Economic Area (EEA). Second, the United Kingdom could enter into a bilateral free trade
agreement with the EU, Canada has a similar arrangement. As a third option, the United
Kingdom could pursue trade with the EU under its current membership in the Worid Trade
Organization. Would allow Britain to play a bigger role in the global arena. In fact, the U.S.
president said, being part of the ev actually amplified Britain's voice around the world. In lieu of
EU membership, several alternative options would be available to the United Kingdom. First, the
United Kingdom could retain privileged access to the EU's single market by joining Iceland,
Lichtenstein, and Norway in the European Economic Area (EEA). Second, the United Kingdom
could enter into a bilateral free-trade agreement with the EU; Canada ha a similar arrangement.
As a third option, the United Kingdom could pursue trade with the EU under its current
membership the World Trade Organization. Those in the "Remain" camp argued that any of
these alternatives would result in substantial decrease in the United Kingdom's GDP. The U.K.
Treasury's chief economist produced reports on the short-term and long-term impact of a
"Leave" vote, factoring in the various alternatives. George Osborne, the Chancellor of the
Exchequer (as the U.K. finance minister is called), said that in the worst-case "Leave" scenario,
more than 800,000 jobs could be lost in the long term. In the short termtwo years after leaving
520 , 000 jobs would be lost. The Treasury report estimated that annual economic output would
fall 6.2 percent under the free trade agreement option. Thus, by 2030 , the average British
households would be worse off by an estimated E 4 , 300 ( $6 , 665 ) Despite these warnings,
some politicians from Cameron's own Conservative Party broke ranks with the prime minister
and his cabinet. Former London mayor Boris Johnson and justice minister Michael Gove, among
others, both argued for "Out." Immigration, Terrorism, and the Migrant Crisis As the migrant
crisis expanded in 2016, Michael Gove, the Conservative politician, asserted that Eu rules
hindered the efforts of Britain's security forces to keep terror suspects out of the country.
Another concern: If Turkey joined the EU, some of its 76 members, favors unconditional free
movement of people some opportunities in Britain. While Germany, one of the strongest EU
conditions on immigration. Questions were raised about the impact on the United Kingdom
outside of the EU framework- Trade with Non-EU Countries If Vote Leave movement prevailed,
the United Kingdom would be outside the framework of the Transatlantic Trade and Investment
Partnership (TTIP; see Case 3-2). The country would then be forced to negotiate separate,
bilateral trade deals with the United States and other countries that currently have agreements
with the EU. Likewise, the EU has signed free- then, U.K. exports to South Korea have increased
30 percent "Remain" advocates noted that there are more advantages when the United Kingdom

2. is part of a wider trade relationship. One thing was clear in the run-up to the June 23,2016 ,
referendum vote: There was a split along voters based on age. Voters age 18-24, who grew up in
the EU era, were in favor of "Remain." By contrast, many older voters, who were nostalgic for
the pre-EU years, intended to vote "Leave." Many members of this demographic, especially
those with lower levels of formal education, viewed globalization as a threat rather than an
opportunity. Brexit supporters were heartened by research showing that older voters were more
likely to go to the polls than younger ones. The Voters Spoke: Leave In the end, those voting
"Leave" won the day. The immediate aftermath of the referendum was a political shakeup. Prime
Minster David Cameron, the man who had called for the referendum, announced that he would
step down. Saying that his work was done, Nigel Farage resigned as leader of UKIP. After brief
maneuvering by several potential candidates, including Boris Johnson, the former mayor of
London, and Energy Minister Andrea Leadom, Theresa May emerged as the new leader of the
Conservative Party. As home secretary starting in 2010. May had proved to be a formidable
presence in a political arena traditionally dominated by men. Some observers compared her
favorably with Margaret Thatcher, the "Iron Lady" who had served as prime minister in the
1980s. Others compared May's no-nonsense, efficient political style to that of German
Chancellor Angela Merket May vowed to "make Brexit a success," but also pledged not to start
the formal Brexit process until 2017 Industry Impact In the late fall of 2016, Nissan announced
that it would produce two new SUV models at its plant in Sunderiand. The announcement came
after Prime Minister May provided assurances to Nissan executives that the automaker would be
protected from any negative Brexit consequences. The plant, located in northeast England, is
very important to the nation's economy. It is the United Kingdom's largest auto manufacturing
plant, employing 7,000 people and producing 500,000 vehicles annually. What is more, some 80
percent of the production is exported, meaning that access to the European Theresa May in
Number 10 Downing Street As prime minister, May advocated a "hard Brexit", in her words,
"No Brexit deal is better than a bad deal" Hoping to bolster out, when voters went to the polls in
June, they did not deliver the "sdap" election for the House or Commons. As it tumed This state
of affairs forced May to back off on some of her plans for Brexit negotiations, which were to be
completed by March 2019. The "Queen's Speech," written by the Prime Minister but delivered
by Queen Elizabeth II two weeks atter the snap election, contained eight bills pertaining to a
"softer" Brexit. in particular, May's legislative program included a Greal Repeal bill to convert
EU legislation into U K law and bills to establish frameworks for customs and trade Questions
for the Future 1. If you had been eligible to vote in the referendum, would you have voted "in" or
"Out" What is the basis for rour answer? 2. What would it mean for the Unite Kingdom to
remain in the "EU customs union"? 3. As this edition went to presshthere was uncertainty about
whether there would be a "hard exit," " solt ext" or "no ex:" Where do things stand currently?