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.
 

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.