Abstract:

A first in the European Union (EU) history has come true when the United Kingdom (UK) decided to leave the EU membership by Brexit referendum in 2016. The Brexit negotiation process has started by 2017. Negotiations were expected to last for two years and the UK to leave EU membership by March 2019. But the process has fallen behind schedule, UK has not left EU membership yet. Position and strategies of the counterparts in negotiations, expected possible results and effects on future relations of the counterparts are examined in the study. Besides how Turkey is affected by the Brexit process is discussed. In this context, both political and economic data of the countries and the Union are reviewed. In Brexit process, UK currency has decreased to the lowest grade of 31 years, export to the EU has declined 20%, UK has lost its position in the financial market and national income narrowed by 1-9%. On the other hand, the EU has lost one of its most important financial resource members, each worldwide reputation is partially damaged, and has faced with new exit rumors. Furthermore, Union's foreign policy has been weakened by Brexit, delays occurred in bilateral agreements. Turkey is directly affected by Brexit. The UK is known to be the country possessing the highest number of foreign investments in Turkey, and there are more than 2900 companies with British capital in Turkey. UK had ranked in 11th place in Turkey's import partners and 2nd place in export partners; after Brexit, foreign trade between two countries has narrowed by 14% and UK has declined to 4th place among major export countries.

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