Brexit 10 years on: UK weighs economic costs and new ties with EU
A decade after the United Kingdom voted to leave the European Union, the long-term impact of Brexit continues to shape the country's economy, trade policy and relations with Europe.
In the referendum held on June 23, 2016, 51.9 percent of British voters supported leaving the EU, while 48.1 percent voted to remain. The UK formally left the European Union on January 31, 2020, and completed its withdrawal from the EU Single Market and Customs Union at the end of the transition period on December 31, 2020.
The main political arguments behind Brexit included strengthening national sovereignty, reducing the influence of EU institutions and regaining control over immigration rules. However, new trade barriers, increased bureaucracy and the economic costs of reduced integration with Europe have remained central issues in the post-Brexit debate.
Trade impact remains one of Brexit's biggest debates
Trade has become one of the most contested areas of Brexit's legacy.
According to data from the UK House of Commons Library, UK goods exports to the EU in 2025 remained 14 percent below 2019 levels in real terms. By comparison, goods exports to non-EU countries declined by about 8 percent over the same period.
However, Britain's services sector has shown stronger performance. UK services exports to the EU increased by 28 percent in real terms between 2019 and 2025, highlighting a mixed picture of Brexit's economic impact.
Small and medium-sized businesses have faced particular challenges due to new customs procedures, regulatory requirements and higher costs when accessing the European market. Researchers have suggested that many smaller exporters reduced or ended sales to the EU because they struggled to adapt to the new trading environment.
London seeks closer cooperation with Brussels
Despite leaving the EU, the British government has moved toward rebuilding closer relations with Brussels in recent years.
The UK is not seeking to rejoin the EU or return to the Single Market and Customs Union, but it is pursuing a closer partnership in areas such as trade, energy, security, defence and education.
At the first UK-EU summit in May 2025, both sides agreed to establish a new Strategic Partnership aimed at expanding cooperation.
Brussels has also shifted its approach toward London, moving from managing the consequences of Brexit to building a new partnership model. At the first EU-UK summit since Britain's withdrawal, held in May 2025, the two sides agreed on a new Strategic Partnership covering areas such as security, defence, trade, energy and mobility. The agreement marked a move toward closer cooperation without reopening the question of UK membership in the bloc.
Discussions have included Britain's possible return to the Erasmus+ student exchange programme, easier youth mobility arrangements, closer cooperation on energy markets, linking carbon trading systems and reducing barriers for food and agricultural trade.
Fisheries and Northern Ireland remain sensitive issues
Fishing, one of the most symbolic issues during the Brexit campaign, has also become part of renewed negotiations between London and Brussels.
Under a 2025 agreement, access for UK and EU fishing fleets to each other's waters was extended for another 12 years. The British government said it continues to maintain sovereignty over its waters while seeking practical arrangements with European partners.
Northern Ireland remains one of Brexit's most complex challenges. The UK's departure from the EU created difficulties over managing the border between Northern Ireland and the Republic of Ireland.
The Windsor Framework has preserved special trade arrangements for Northern Ireland, aiming to maintain smoother movement of goods while addressing concerns over the UK's internal market.
Brexit also affected the residency rights of British citizens living in EU countries. In Sweden, a number of UK nationals faced difficulties obtaining post-Brexit residency status after failing to complete required applications within the deadlines. The issue became one of the most visible examples of the practical consequences of Brexit for citizens' rights.
Brexit debate enters a new phase
Ten years after the referendum, the Brexit debate has shifted from whether Britain should leave the EU to how the country can manage the consequences of that decision.
Supporters argue that Brexit restored Britain's ability to make independent decisions and pursue trade agreements beyond Europe. The government continues to highlight new partnerships outside the EU as a political gain.
Critics point to weaker goods trade with Europe, increased administrative costs and reduced economic integration as major challenges.
The current approach in London focuses on maintaining political independence while reducing the economic and strategic costs of separation through selective cooperation with the EU.
As a result, Brexit remains an unfinished political and economic process. The future of UK-EU relations will largely depend on progress in areas such as trade barriers, energy cooperation, education, youth mobility and economic coordination.(ILKHA)
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