The EU benefits from being one of the most open economies in the world and remains committed to free trade.
Over the next ten to 15 years, 90% of world demand will be generated outside Europe. That is why it is a key priority for the EU to tap into this growth potential by opening up market opportunities for European businesses abroad. One way of ensuring this is through negotiating agreements with our key partners.
Funny old thing…it looks like the BBC’s Kamal Ahmed is a one man hit squad for the Remain camp out to neutralise any Leave campaign ‘good news’.
We’ve already noted his immediate rebuttal to Steve Hilton’s claim that all economic forecasts about Brexit are so much bunk and now as James Dyson tells us that it is ‘cobblers’ that the EU won’t trade with us Kamal again slips in a spoiler. Just a week or so ago he was painting a gloomy picture of the economy on Brexit…
All the different effects are actually derived from one significant starting point – that the economy would be smaller if the UK left the EU relative to where it would be if “remain” won on June 23.
On this issue, with varying degrees of pessimism, there is widespread – though not total – agreement among economic institutions from the International Monetary Fund to the Bank of England.
On trade, most economists agree that moving out of the single market will negatively effect Britain’s economic relationship with what is left of the EU.
It is also argued that British exporters will find it difficult to replace that trade by increasing economic links with countries such as America and China, particularly in the first few years.
Now, with the famous and credible billionaire businessman Dyson rubbishing claims that trade will stop Kamal changes his tune…Brexit – and stay in the single market? Here’s how. However, this being the pro-EU BBC, it’s not that simple as a seemingly pro-Brexit piece still pushes the ‘Brexit is a huge risk’ scenario the solution to which is still in doubt…
Today, Wolfgang Schaeuble, the German finance minister, appeared to say as much – a vote for Brexit is also a vote for leaving the single market, and all its advantages. “If the majority in Britain opts for Brexit, that would be a decision against the single market,” Mr Schaeuble told Der Spiegel.
“In is in. Out is out. One has to respect the sovereignty of the British people.”
For some business leaders sympathetic to Brexit – and close to the Prime Minister – this is a problem. They agree that leaving the single market could result in significant economic headwinds. But, they tell me, there is a solution – the UK remaining in the single market but without the need for full free movement as presently constituted.
Kamal ends with this after having set the scene that Brexit will be an economic disaster for Europe…
The economic needs of businesses in the rest of the EU may force the hand of political leaders.
Why has the BBC’s economic editor only just realised the truth that has been obvious for a long time…as indeed we set out before in April…..
Would the EU lock the UK, the 5th largest economy in the world and an important trade partner with the EU, out of its markets? Hardly seems likely when it is committed to open markets and free trade……import tariffs very low or zero…..
The EU benefits from being one of the most open economies in the world and remains committed to free trade.
The average applied tariff for goods imported into the EU is very low. More than 70% of imports enter the EU at zero or reduced tariffs.
The EU’s services markets are highly open and we have arguably the most open investment regime in the world.
The EU has not reacted to the crisis by closing markets. However some the EU’s trading partners have not been so restrained as the EU has highlighted in the Trade and Investment Barriers Report and the report on protectionism.
In fact the EU has retained its capacity to conclude and implement trade agreements. The recent Free Trade Agreements with South Korea and with Singapore are examples of this and the EU has an ambitious agenda of trade agreements in the pipeline.
And here was our very own PM back in 2012 urging the EU to finalise a trade deal with Canada and all without free movement of people…
Cameron urges EU to strike free trade deal with Canada.
27 Jan 2012 Toronto Star, page A4
OTTAWA— British Prime Minister David Cameron is urging his fellow European leaders to move quickly to sign a free-trade deal with Canada.
He said opening up export markets for the European Union’s 27 member countries is a key part of an urgently needed effort to strengthen the continent’s economies.
“Let’s get EU free trade agreements with India, Canada and Singapore finalized by the end of the year,” he said in a speech at the World Economic Forum in Davos, Switzerland.
If these trade liberalization deals were in place, it could generate an additional $118 billion in economic activity in EU countries, Cameron said.
And now? Cameron tells us such deals are impossible.
Funny how long it takes Kamal to come anywhere near close to reporting that the EU is desperate to do free trade deals with all and sundry as a matter of course. Remain must love him…Attaboy Kamal. Good lad. Keep up the good work and keep Leave down.