Committee: G20 Topic B: World After Brexit Under Secretary: Juan Pablo Zorrilla Bayardo Chair: Paulina Cruz Tamayo Moderator: Daniel Chagüén Hernandez Introduction: On the 23rd of June 2016, the people of the United Kingdom voted on a referendum which would essentially decide whether they would stay a member of the European Union, or if they were to leave and be a truly economically independent country just like most of the others. 48.1% voted to remain, while 51. 9% voted to leave, and thus, the government of the UK decided to initiate Brexit, the combination of the word Britain and exit. It was agreed that on the 29 th of March 2019, the UK would officially leave the EU and on the mean time, both parties would engage in long negotiations in an attempt to make the whole process smoother and to finalize some loose ends. However, more than two years later, and the negotiations seem to have reached nowhere. The economic impacts not only on Europe but on the world may be harsh Background Research: After the referendum took place, British politicians promised smooth and easy negotiations with the EU, however, after two years of negotiating and discussing constantly, many of the main concerns are still unresolved. Naturally, this process is very hard, and it is land never before explored, as no other country has ever attempted to actually leave the European Union. One of the main concerns is the border between Ireland and Northern Ireland, another big concern, not only impacting Europe, but also the world, is the EU budget and if the UK owes any money. This is an especially delicate subject as the EU is one of the main contributors in the UN to humanitarian aid and a whole commission and the budget cut resulting from the UK leaving will put this at risk. However, no topic is of more interest to the international community than trade. Specifically, since two very different outcomes can occur depending on the negotiations. As the deadline comes closer, a “no deal-hard” Brexit seems to be the most possible outcome of the two options. This would only happen if the EU and the UK can not reach an agreement before the end of March. Many British believe that this is the better way to leave the EU, since this would allow the UK to regain control over their own trade, as they would be completely removing themselves from the single market, the customs union, and the free trade area set by the EU. All trade deals between the UK, the EU, and the rest of the world, will no longer be applicable if this were to happen, meaning that the UK will not only lose their main exporting partner, the EU who receive 44% of exports tariff free, but also loses 60 trade relationships provided by the Union. This is why this is a very important subject for the rest of the world, as everyone is unsure about their future relationship with Britain. After a hard Brexit, the UK would immediately be under the rules of the World Trade Organization. The WTO is an organization that seeks to regulate all global trade to ensure fairness. Before leaving, the UK has access to all deals set by the EU as a block, but after leaving, the UK will need to strike new deals with countries on its own, however, since the British economy is significantly smaller that the combined might of Europe, there will be less bargaining power. With every country wanting to get something out of the situation, achieving new trade deals will be very hard and difficult and it may heavily impact Europe’s economy, and possibly, the world. United Nations Intervention: The UN has remained relatively quiet on this issue, however, “The United Nations called on the U.K. to honor its promise to deliver a “green Brexit,” ensuring the environment does not suffer as a result of Britain’s departure from the EU” (Barigazzi, 2018). Points to consider: Most countries want to take something out of this situation. The G20 is composed of 20 most important economic countries, representing 85% of the global GDP and it was created to combat economic crisis. The summit is attended by the presidents of each country, so they can make more impactful decisions than a representative. Questionnaire: A. What is my country’s position? B. How will your country’s relationship with the UK be? C. What can my country do to solve this issue? D. Which countries can my delegation work with? E. What are three possible solutions? Useful links: Brexit: All you need to know: https://www.bbc.com/news/uk-politics-32810887 The Potential Impact of Brexit on the Global Economy: https://www.forbes.com/sites/baininsights/2016/06/29/the-potential-impacts-of-brexit-on-the-globaleconomy/#6c14a59c7b48 The Economic Effects of Brexit So Far: https://www.ft.com/content/dfafc806-762d-11e8-a8c4408cfba4327c