"No
decisive progress" on Brexit –
Barnier.
So shrieks the headline on the
British Broadcasting Corporation News web site today.
Mr Barnier also said said negotiations are still "quite far"
away from being in a position to begin talks on future trade arrangements. He also said there were issues of
"trust" between the two sides.
So there you have it.
Given most people
read just headline unless they are interested in the story, readers will have
been left with the impression things are not going well for the British.
But reported at the bottom, UK Brexit
Secretary David Davis is quoted as urging the EU to be "more imaginative and
flexible" in its approach.
So why are
the words of the UK Cabinet Minister not given priority over that of a person representing an organisation that most rational people believe is clearly trying to undermine the UK position as much as it can? Postcards to the BBC.
The editorial staff are giving lots of free ammunition
for the future to people who want to cut the BBC down to size.
And on the
performance of their web site, that’s exactly what the BBC deserves.
Thursday, August 31, 2017
Tuesday, August 29, 2017
No sign up, no entry. No ambiguity there. Is there?
If we were seeking to join the EU we
would be told that joining would mean we had to sign up to a number of things.
No sign up, no entry.
These include freedom of movement, giving up freedom to negotiate trade deals, having your national parliament subject to the rulings of the ECJ, and now joining the European single currency. I think we all understand that. It’s simple. So leaving the EU means leaving all these. So simple.
What bit don't hard line Remainers understand we voted for? And what does an exceedingly clever chap like Keir Starmer think he is doing with all this nonsense he is now spouting? He must know it sounds utterly stupid.
As Mark Wallace says “Keir Starmer absolutely, clearly, and unambiguously declares war on Brexit ambiguity. Sort of.”
These include freedom of movement, giving up freedom to negotiate trade deals, having your national parliament subject to the rulings of the ECJ, and now joining the European single currency. I think we all understand that. It’s simple. So leaving the EU means leaving all these. So simple.
What bit don't hard line Remainers understand we voted for? And what does an exceedingly clever chap like Keir Starmer think he is doing with all this nonsense he is now spouting? He must know it sounds utterly stupid.
As Mark Wallace says “Keir Starmer absolutely, clearly, and unambiguously declares war on Brexit ambiguity. Sort of.”
Michel Barnier knows, and he knows we know.
You know the European Union is running
on empty when you hear the statements from its head negotiator. The EU chief negotiator Michel Barnier has
expressed concern about progress so far, as the third round of Brexit talks
gets under way. Time after time he says the
UK are not doing enough.
But he knows, and he knows we know, what he really means is the UK are simply not playing ball with the EU and their rather ridiculous demands and posture. His warning that UK "ambiguity" must be removed and progress on "separation" issues made before any talks on the future EU-UK relationship is hype. It is said to try and worry the people of the UK.
David Davis could of course cheapen himself and respond in kind and say something like, “the EU are just prevaricating and we know it!” But he doesn’t.
What is clear is UK and European businesses really want the whole thing settled and settled quickly. They are not interested in the politics of the un elected European Commission. They are interested in buying and selling goods.
And has been said time and time again, even if the EU refuse to do a deal, businesses will continue to trade across La Manche.
All that will happen is the EU will effectively be taken out of the trade loop as the UK will simply operate under WTO rules as we already do with the rest of the planet.
And Michel Barnier knows that.
But he knows, and he knows we know, what he really means is the UK are simply not playing ball with the EU and their rather ridiculous demands and posture. His warning that UK "ambiguity" must be removed and progress on "separation" issues made before any talks on the future EU-UK relationship is hype. It is said to try and worry the people of the UK.
David Davis could of course cheapen himself and respond in kind and say something like, “the EU are just prevaricating and we know it!” But he doesn’t.
What is clear is UK and European businesses really want the whole thing settled and settled quickly. They are not interested in the politics of the un elected European Commission. They are interested in buying and selling goods.
And has been said time and time again, even if the EU refuse to do a deal, businesses will continue to trade across La Manche.
All that will happen is the EU will effectively be taken out of the trade loop as the UK will simply operate under WTO rules as we already do with the rest of the planet.
And Michel Barnier knows that.
Thursday, August 24, 2017
Not all Economists toe the Remainers line, for good reason.
Economists for Free Trade was re-launched this week by 16 of
Britain’s leading economists to promote the case for true free trade, with zero
tariff and non-tariff barriers (note this doesn’t mean zero standards) on
imports, in the wake of Brexit.
Yip, there is indeed a body of serious economists who don’t go with the line pedalled that there is only one view you should consider or you are stupid. So here are 10 reasons from them why true free trade is the key to making Brexit a great success:
1. The government, opposition and most of the media still don’t “get it” with regard to the purpose of trade policy. The ultimate aim of all economic activity is consumption. The number one priority of trade policy should be the consumer, and the benefit they could receive from lower prices.
2. The lesson of economic history is that true free trade significantly lowers the prices consumers’ pay in the short term, and drives up productivity and incomes for producers and consumers in the long term, due to the effect of intensified global competition. Economists for Free Trade estimate that international liberalisation and intensified competition at home – from removing onerous regulation – could raise GDP by £135bn. Let’s not get too hung up on the precise number. The key point is that it is big. Project fear would be replaced by project prosperity.
3. Trade policy is being formulated with all eyes on the producer not the consumer. The Holy Grail of Brexit for Whitehall is zero tariffs on UK exports to the EU, not zero tariffs on UK imports from everywhere.
4. We have to get out of the EU Customs Union, which surrounds the UK (and the EU) with a protectionist wall. Economic modelling suggests that the short term gains to consumers from lower prices would be seven times the cost to producers. Exiting the Customs Union would free us to negotiate independent free trade agreements across the globe.
5. We also have to get out of the Single Market. This surprises people until they realise we need to put “skin in the game” with regard to non tariff barriers in future trade negotiations. Being part of the Single Market’s single regulatory regime would greatly hinder future trade negotiations with the rest of the world.
6. Only six per cent of UK companies do business with the rest of the EU, but 100 per cent of UK companies are subject to Single Market rules. Moreover, even the European Commission’s own studies are lukewarm towards the gains which have actually been achieved by the Single Market.
Yip, there is indeed a body of serious economists who don’t go with the line pedalled that there is only one view you should consider or you are stupid. So here are 10 reasons from them why true free trade is the key to making Brexit a great success:
1. The government, opposition and most of the media still don’t “get it” with regard to the purpose of trade policy. The ultimate aim of all economic activity is consumption. The number one priority of trade policy should be the consumer, and the benefit they could receive from lower prices.
2. The lesson of economic history is that true free trade significantly lowers the prices consumers’ pay in the short term, and drives up productivity and incomes for producers and consumers in the long term, due to the effect of intensified global competition. Economists for Free Trade estimate that international liberalisation and intensified competition at home – from removing onerous regulation – could raise GDP by £135bn. Let’s not get too hung up on the precise number. The key point is that it is big. Project fear would be replaced by project prosperity.
3. Trade policy is being formulated with all eyes on the producer not the consumer. The Holy Grail of Brexit for Whitehall is zero tariffs on UK exports to the EU, not zero tariffs on UK imports from everywhere.
4. We have to get out of the EU Customs Union, which surrounds the UK (and the EU) with a protectionist wall. Economic modelling suggests that the short term gains to consumers from lower prices would be seven times the cost to producers. Exiting the Customs Union would free us to negotiate independent free trade agreements across the globe.
5. We also have to get out of the Single Market. This surprises people until they realise we need to put “skin in the game” with regard to non tariff barriers in future trade negotiations. Being part of the Single Market’s single regulatory regime would greatly hinder future trade negotiations with the rest of the world.
6. Only six per cent of UK companies do business with the rest of the EU, but 100 per cent of UK companies are subject to Single Market rules. Moreover, even the European Commission’s own studies are lukewarm towards the gains which have actually been achieved by the Single Market.
In any case, the EU is under a legal obligation to enter into
mutual recognition of standards agreements where our goods substantially comply
with EU regulation – which of course they already do.
7. There are numerous examples of non-EU countries whose exports to the EU have grown faster than EU countries exports to the rest of the EU have. We need to have more self-confidence. Presently 194 countries and territories successfully trade in the Single Market – without being a member of it.
8. The UK could become a global cheerleader for true free trade. We’ve done it before – with the abolition of the Corns Laws in 1846 – and we could do it again. If we want to help poorer countries, the best way is to open up our markets to them, not send them a cheque from HM Government for 0.7 per cent of GDP.
9. True free trade is based on a counter intuitive truth, that selfless behaviour –opening up your markets to more intensified global competition – is the best policy to boost long-term prosperity.
10. True free trade is entirely within our sovereign power. No negotiation is required, we just lodge a zero tariff schedule with the WTO. The UK would be free to improve its own regulatory regime, negotiate better bilateral deals and help improve the global rules on trade.
Easy. Let’s Just Do It!
7. There are numerous examples of non-EU countries whose exports to the EU have grown faster than EU countries exports to the rest of the EU have. We need to have more self-confidence. Presently 194 countries and territories successfully trade in the Single Market – without being a member of it.
8. The UK could become a global cheerleader for true free trade. We’ve done it before – with the abolition of the Corns Laws in 1846 – and we could do it again. If we want to help poorer countries, the best way is to open up our markets to them, not send them a cheque from HM Government for 0.7 per cent of GDP.
9. True free trade is based on a counter intuitive truth, that selfless behaviour –opening up your markets to more intensified global competition – is the best policy to boost long-term prosperity.
10. True free trade is entirely within our sovereign power. No negotiation is required, we just lodge a zero tariff schedule with the WTO. The UK would be free to improve its own regulatory regime, negotiate better bilateral deals and help improve the global rules on trade.
Easy. Let’s Just Do It!
Wednesday, August 23, 2017
The world is about to end.....
Remember Project Fear? The world
is about to end if we vote to leave the European Union? It seems a long time ago. Many economists, but by no means all, were
lining up to tell us what a disaster it would all be. If we voted Leave it
would be fiscal and social disaster.
Ah, “it will still be a disaster” they mourn. It may just take longer. And of course, they may be right. That’s the thing about economics.
But you would have thought that those who predicted gloom and disaster, which hasn’t happened, would be a bit more circumspect when it came to putting their collective heads above the parapet again. But no.
This time they have rounded on the idea of unilaterally introducing zero tariffs. To put this in a bit of context the EU’s Common External Tariff comprises 12,651 different taxes and quotas imposed on goods from the rest of the world. So the Customs Union that they proudly support is, in effect, a protectionist barrier to free trade with the 162 countries outside the EU. Those who say that the EU reduces trade barriers are, to put it mildly, being somewhat disingenuous.
Again, to add some sort of context, British exporters manage to trade with most of the world already without State negotiated trade deals. It's how the world works. That is the existing position with most of the world, Brexit or no Brexit. Trade happens. It happens without international agreements or harmonised regulations. And you know what, that won’t change one iota the day Britain leaves the EU.
Let’s look at the worlds as it is, not as the EU would like it to be.
The UK has no trade deal with the USA. So does that hinder us? Nope. Ask Jaguar Landrover and Rolls Royce. Does it hinder the USA? Nope. Teslas are flooding to our shores. And amazingly, both UK and USA cars are sold in the different countries with the steering wheel on the correct side for the country of use. Well well.
Goods and services are sent all over the world from the UK in a format that is appropriate to the market it will be used in. Manufacturers cope. Traders localise their products without regulatory prompting if they want to make a profit. And they do. When the EU and its Regulatory systems operate barriers don’t halt trade, that is true. But they sure complicate it.
For centuries, businesses have traded the world. And they will for centuries more.
Long after the EU has evaporated.
But it hasn’t turned out that way.
We didn’t end up in recession by last Christmas as they forecast. Indeed, the reverse was true.
Ah, “it will still be a disaster” they mourn. It may just take longer. And of course, they may be right. That’s the thing about economics.
But you would have thought that those who predicted gloom and disaster, which hasn’t happened, would be a bit more circumspect when it came to putting their collective heads above the parapet again. But no.
This time they have rounded on the idea of unilaterally introducing zero tariffs. To put this in a bit of context the EU’s Common External Tariff comprises 12,651 different taxes and quotas imposed on goods from the rest of the world. So the Customs Union that they proudly support is, in effect, a protectionist barrier to free trade with the 162 countries outside the EU. Those who say that the EU reduces trade barriers are, to put it mildly, being somewhat disingenuous.
Again, to add some sort of context, British exporters manage to trade with most of the world already without State negotiated trade deals. It's how the world works. That is the existing position with most of the world, Brexit or no Brexit. Trade happens. It happens without international agreements or harmonised regulations. And you know what, that won’t change one iota the day Britain leaves the EU.
Let’s look at the worlds as it is, not as the EU would like it to be.
The UK has no trade deal with the USA. So does that hinder us? Nope. Ask Jaguar Landrover and Rolls Royce. Does it hinder the USA? Nope. Teslas are flooding to our shores. And amazingly, both UK and USA cars are sold in the different countries with the steering wheel on the correct side for the country of use. Well well.
Goods and services are sent all over the world from the UK in a format that is appropriate to the market it will be used in. Manufacturers cope. Traders localise their products without regulatory prompting if they want to make a profit. And they do. When the EU and its Regulatory systems operate barriers don’t halt trade, that is true. But they sure complicate it.
For centuries, businesses have traded the world. And they will for centuries more.
Long after the EU has evaporated.
Well done Lidl.
This is an odd one. Lidl has beaten Waitrose to become the UK's seventh largest supermarket chain, according to latest grocery market share figures.
And this is why the EU way of doing things will eventually lead to its collapse. They simply cannot accept or believe that trade can happen very happily without them.
Take the export of 90 iconic red London buses to Mexico as export finance worth £1.7 billion enables buoyant Brexit Britain to break free into global markets. Or how about Norton Motorcycle, an iconic British motorcycle brand, selling 1000 bikes a year to Australia, North America, Japan and Europe. Or Design and Projects, a Hampshire-based engineering company, exporting €12 million of rail equipment for a metro line in Bangkok. Or BurntIsland Fabrications Ltd winning a £100 million contract to support an offshore wind farm. Or Distinction winning a $7 million contract to supply the Palm Jumeriah hotel in Dubai with luxury furniture. I could go on.
These are not household names. But they are blazing a trial for what the UK has always been good at.
Selling around the world.
Well done Lidl we all say. How has it achieved this? By focusing on customer demand. It really is that simple. So why is it odd?
It is odd because when we voted to leave the European Union there were cries that businesses like Lidl and Aldi who are based in the EU would pull up sticks and abandon the UK. A lost cause. What happpend was the total opposite. Lidl and Aldi commited massive investment into the UK. But of course, what the EU forgets is that businesses are not like the EU. Businesses seek opportunity. The EU closes it down unless it’s on their terms.
It is odd because when we voted to leave the European Union there were cries that businesses like Lidl and Aldi who are based in the EU would pull up sticks and abandon the UK. A lost cause. What happpend was the total opposite. Lidl and Aldi commited massive investment into the UK. But of course, what the EU forgets is that businesses are not like the EU. Businesses seek opportunity. The EU closes it down unless it’s on their terms.
And this is why the EU way of doing things will eventually lead to its collapse. They simply cannot accept or believe that trade can happen very happily without them.
Take the export of 90 iconic red London buses to Mexico as export finance worth £1.7 billion enables buoyant Brexit Britain to break free into global markets. Or how about Norton Motorcycle, an iconic British motorcycle brand, selling 1000 bikes a year to Australia, North America, Japan and Europe. Or Design and Projects, a Hampshire-based engineering company, exporting €12 million of rail equipment for a metro line in Bangkok. Or BurntIsland Fabrications Ltd winning a £100 million contract to support an offshore wind farm. Or Distinction winning a $7 million contract to supply the Palm Jumeriah hotel in Dubai with luxury furniture. I could go on.
These are not household names. But they are blazing a trial for what the UK has always been good at.
Selling around the world.
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