ChatterBank1 min ago
What Do We Export And I Port From The Euro That We Could Do Elsewhere If Given The Freedom To Do Our Own Trade Deals?
5 Answers
I have read on here a few times that we import more from the EU than we export to it.
If that is the case then we don't need a trade deal as such. We just match any tax, levy or payment they want for our goods going to them and we do the same when we want to in port their goods. In the long run we win.
Very over simplistic argument I know but that's basicly it in a nut shell surely?
If that is the case then we don't need a trade deal as such. We just match any tax, levy or payment they want for our goods going to them and we do the same when we want to in port their goods. In the long run we win.
Very over simplistic argument I know but that's basicly it in a nut shell surely?
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>>> If that is the case then we don't need a trade deal as such
You seem to be ignoring the reason why many non-EU firms (such as Japanese car manufacturers) have built factories and distribution centres (employing many thousands of people) within the UK. The main (or probably the only) reason that they're here is because they can access the EU market without having to pay import duties in France, Germany, etc, thus enabling them to sell their cars (or whatever) at more competitive prices in those countries.
If the UK doesn't get a deal that enables the free movement of goods between the UK and the EU to continue, the vast majority of such firms will close their UK operations and move their facilities to France, Germany, etc. That would result in high unemployment in areas where those overseas companies are currently the main employers, with knock-on effects elsewhere as the companies which supplied goods and services to them also lay off workers.
Many analysts estimate that unemployment will rise to at least 5 million people (with some fearing that it might reach 8 million) if the UK can't continue to trade freely with the EU. That would result in higher taxes to pay for all the state benefits to those people, meaning that those still in work had less money to spend in the shops. That, in turn, would lead to an economic downturn, lasting for perhaps 30 years or more.
You seem to be ignoring the reason why many non-EU firms (such as Japanese car manufacturers) have built factories and distribution centres (employing many thousands of people) within the UK. The main (or probably the only) reason that they're here is because they can access the EU market without having to pay import duties in France, Germany, etc, thus enabling them to sell their cars (or whatever) at more competitive prices in those countries.
If the UK doesn't get a deal that enables the free movement of goods between the UK and the EU to continue, the vast majority of such firms will close their UK operations and move their facilities to France, Germany, etc. That would result in high unemployment in areas where those overseas companies are currently the main employers, with knock-on effects elsewhere as the companies which supplied goods and services to them also lay off workers.
Many analysts estimate that unemployment will rise to at least 5 million people (with some fearing that it might reach 8 million) if the UK can't continue to trade freely with the EU. That would result in higher taxes to pay for all the state benefits to those people, meaning that those still in work had less money to spend in the shops. That, in turn, would lead to an economic downturn, lasting for perhaps 30 years or more.
It is true that you don't need a deal and both parties can pay tariffs on their imports, but if you have the option to buy from a country that doesn't attract a tariff would you not be tempted, over time, to trade more with them and less with the original supplying country (all other things being equal) ? Deals are advantageous to both sides; and it'd be foolish not to agree one: especially if one side refused in a fit of pique because the other party decided no longer to accept four, unrelated to trade, blatant impositions just in order to be part of a trading block.
We are free to import and export to who we like now but we do 45% of our trade woth the EU because it is close so costs are cheaper.
We could source a lot of our goods from the US but they would be more expensive so things in the shops would get more expensive. Likewise the goods we export would have higher shipping costs, so would be more expensive in foreign nonEU markets, so we would probably sell less.
In the end, we want prices in the shops to be as low as possible, and our exports.
We could source a lot of our goods from the US but they would be more expensive so things in the shops would get more expensive. Likewise the goods we export would have higher shipping costs, so would be more expensive in foreign nonEU markets, so we would probably sell less.
In the end, we want prices in the shops to be as low as possible, and our exports.
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