On 13rd July 2016, I assumed office as the prime minister of this great nation.

As honored as I
was to begin my tenure as the second female prime minister of the United Kingdom, I was
equally anxious due to the circumstances under which I was to start heading the nation. 24th
June 2016 proved to be a significant day in the history of British politics. Democracy proved
how the will of the people is supreme in driving a nation. It was this day the citizens of this
great nation chose to leave the European Union after a 43 year long and prosperous
relationship. The result of the referendum lead to a series of consequences which needed an
immediate resolve. On one hand, the Sterling had dropped to a 31-year low against the dollar
(The Guardian, July 2016, Angela Monaghan), while on the other hand Scotland was deciding
on another independence referendum, thus threatening the unity of the Kingdom. As I was
heading towards 10 Downing Street, I was faced with a daunting job of initiating Brexit
negotiations with the EU, salvage a plummeting economy and unite a divided nation. What I
was sure of was that the need of the hour is to bring stability to the government amid all this
chaos and strike a deal with the European Union which proves beneficial to the British
economy. The people have voted in large numbers and shown us what they want and envision
Britain as. Now it is my duty to uphold their decision and work towards a better future for her
Majestys Kingdom.

While my cabinet and I were working tirelessly to draft the negotiations and kick start the
Brexit process, I realized the impacts Brexit would have on the economy of the United
Kingdom. I couldnt help but consider the change in business that was going to take place as a
result of this vote. The European Union has been one of United Kingdoms greatest partner in
trade of goods and services. By virtue of the Single market operations, trade with the Union
has given massive business to the citizens of the Kingdom. From an economic perspective, in
2016, 54.3% of UK exports by value are delivered to our European trade partners (The
Independent, July 2016, Ben Chu). This means more than half of our business from trading
comes from the European Union and such a large figure has been made possible due to no red
tape and easy, tariff-free procedures. One of my biggest concerns is how are we going to
continue this flourishing trade which has largely benefitted our country without being member
of the Single market? Moreover, with little willingness from the EU heads of state, how free
will this new Free Trade Agreement be? Will the political obstacles from other member states
hinder a great deal for our nation?
As I had stated before in my speech, no deal is better than a bad deal for Britain. Since I have
assumed office, my biggest concern has been to draft the fairest possible Free Trade Deal
with the European Union so that business can continue as it has previously with least possible
friction. Since 1993 Britain has immersed itself and enjoyed the utmost benefits of this
arrangement. The market is intended to be conducive to increased competition, increased
specialization, larger economies of scale, allowing goods and factors of production to move to
the area where they are most valued, thus improving the efficiency of the allocation of
resources. It is also intended to drive economic integration whereby the once separate
economies of the member states become integrated within a single EU-wide economy. Free
access to a 15 trillion a year Single Market of 500 million people is the key benefit we were
receiving (Institute for Fiscal Studies, Aug 2016, Report 119). The 220 billion exports of
goods and services to other EU countries were worth about 12% of the value of the British
economy in 2015, and 230 billion or 13% in 2014. While exports from the rest of the EU to
the UK were worth about only 3-4% of the size of the remaining EUs economy in 2014 (Office
for National Statistics, December 2016). These numbers give a picture of how free trade is of
great significance to our economy and also the key to UKs prosperity after Brexit, provided
we get a deal to continue in the same tariff-free way

While the EU membership has proved beneficial to us, it does come at a cost, a cost quite big
indeed. To remain a part of the union, an annual monetary contribution has to be made. In
2015, United Kingdoms net contribution was 12.9 billion, being the second largest second
only to Germany (The Telegraph, February 2017, Asa Bennett and James Kirkup). Thats
around 200 for every person in the UK and more than the annual budget of the Home Office,
which spends about 9 billion a year. This is money which could be spent in our country the
way we want to spend it to uplift our staggering economy. Apart from the monetary costs, the
European Unions free labor movement rules have led to a huge spike in immigration into the
Kingdom, thus putting an enormous pressure on our resources and hindering our development.
The vote has clearly shown how free movement, leading to greater immigration into our
country needs to be sustained to certain levels, which could not be done if we were to remain
as a member. Hence an independence from the EU would not only mean reduced costs, but
also freedom to function in a way which is best suited for the people of our nation. However
even though an exit from the union means an exit from the single market, it doesnt need to
mean that our businesses will suffer. What my government focuses on achieving is constructing
the best Free Trade Agreement which is beneficial for us and at the same time doesnt come
with the costs we had to bear while being a member.

I acknowledge the massive obstacles associated with constructing this ideal deal, but in order
to sustain our industries which drive our economy, we need to get this agreement across. There
are many industries which will be largely affected due to changes brought about by Brexit,
however, this one industrys uncertain future worries me due to its high contribution to our
economy and its sensitive nature to cross-border dealings. The automotive industry- one of
Britains biggest industries, employs 817,000 people and turns over 71.6bn annually is right
at the centre of concerns. This industry exports 55% of its products to the EU states and the
manufacturing units established in UK buy 36% of the parts from the Union states. (The
Financial Times, Oct 2016, Peter Campbell). Hence this industry is highly dependent upon the
European Union not only as a marketplace but also as a supplier of manufacturing products.
Whether they will still be able to move parts across the English Channel as quickly and
affordably after Brexit, is a major concern which completely depends on the type of deal we
can come up with. The speed at which parts are moved from factory to factory located across
the union is critical. Most car plants in Britain operate with what is known as just-in-time
(JIT) production. This involves components being added straight to the car when they arrive at
the factory rather than being stored in a warehouse. The system dramatically improves the
productivity of the plant but any interruption to supply chain can bring production to an
immediate halt. For example, Nissans plant, the largest one in the country, uses 5 million parts
a day and produces one car every two minutes. Hence even the slightest delay due to customs
and formalities which might come up after we leave the single market can adversely affect such
plants business.

While I recognize the adverse effect our industries will have to deal with due to loss of the
single market, there is nothing we can do but work towards the best possible Free Trade
Agreement. As the captain of this ship riding through a storm, I have the responsibility to
ensure the smoothest transition with the least possible effect on our businesses and people. The
kind of deal I plan to initiate is simple, we dont seek membership of the Single market, but
greatest possible access to it through the Free Trade Agreement. As much as Britain gains by
doing business with the EU, even they have enjoyed having zero tariffs across the border and
profited largely from it. Hence this deal isnt just in favour of Britain but in good interests of
the Union too. We have been working on the agreement to be as free as possible which shall
not harm industries on both sides of the border and keep the healthy relationship to continue.
The proposal might not be easily accepted by the heads of states in the continent, but, as I stated
before, the free trade benefits both the parties and any intention on their side to treat UK harshly
for this exit will result in self harm. Moreover, this would hinder our collective plans towards
a prosperous future that we hope to achieve together as close friends.

Brexit is a complex phenomenon, it doesnt only effect the United Kingdom and the EU but
leaves a lasting impact on the global front. Due to the highly connected nature of all elements
in the present times, our decision is one which effects our dealings with countries far away
from the EU too. In the global village that we live in, one decision leads to a chain effect
initiating a complex web of events affecting every member of this eco-system. While we deal
with our FTA with EU, we will also have to draft independent bilateral deals with other
countries which was earlier not possible due to EU regulations. Our work on fostering new
relationships with various other nations has already begun. Hence with Brexit, I aim to make
Britain more globalized and connected with the rest of world and I see this as an opportunity,
rather than an obstacle, towards a better future for our great nation. Following Brexit, the UK
would no longer be bound by the EUs common external tariff on imports. This unilateral
liberation will give us a chance to tap our trading potential with the rest of the world. What our
citizens have chosen might not seem very viable solely from an economic point of view, but it
does not mean we shy away from its consequences. It is a decision which was the result of the
very essence of democracy and it will be upheld. While many view us with an eye of
pessimism, I am confident and proud of my nations capabilities and view this vote also as a
gateway to a better and brighter United Kingdom.
References

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lows-as-eu-fears-bite-into-global-markets-again

Kirkup, A. B. (2017, February 24). How much do we spend on the EU, and what else
could it pay for? Retrieved March 06, 2017, from
http://www.telegraph.co.uk/news/0/how-much-do-we-spend-on-the-eu-and-what-else-
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Carl Emmerson , Paul Johnson and Ian Mitchell. (2016, August 10). The EU single
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Chrisafis, A. (2017, March 06). UK will have to give up all EU perks after Brexit,
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