FanchesterCity
Well-Known Member
The number of national trade deals per nation is very small... even the USA only has 20:
What the EU does do though is impose tariffs that vary depending on product, quantity and country of origin which is a form of selectively encouraging or hindering which products enter the EU and from where. Whether those are good filters, or bad ones is a matter of debate. The EU believes it's protecting its members in 'policing' things and at the same time, giving advantage to the businesses within the EU.
50% of our exports are to the EU though, so whilst being outside of them isn't a killer, we can't simply just start exporting elsewhere very easily. Over time, that can change, but it's not as simple as not selling car parts to Germany, instead we'll sell them to the USA. We'd have to adapt products and prices accordingly. But that's what business does right? - it just takes time.
Then there's the imports - same deal, most of them come from within the EU - we're heavily tied to them right now.
However people want to frame it, right now, roughly half of our entire international trade is with the EU, so any improvement or deterioration in our trading relationship with the EU has / will have a substantial impact short term. The optimistic view is that we need each other and even during an acrimonious split, neither wants to lose much, so a stalemate would be a fair outcome. The pessimistic view is that the EU has the edge over us, because it's acting as one block, and they are 50% of our entire market, whilst we are only 16% of theirs - that said, we are still their biggest single customer.
There is a third view though - and that is EU meltdown. If the EU collapses, then in theory it's every man for himself and the UK is a very strong position to take advantage. Of course, in such an event, it's very likely that the circumstances of individual members will change dramatically, in which case, it's a hell of market to predict. In that situation is less likely to be 'who comes out smelling of roses' and more likely to be 'who comes out the least injured'.
We should also remember that LOT of our exports are services, as well as goods. We aren't selling bananas here, we're selling highly specialised services in a lot of cases, services that don't transpose particularly well to Africa, or New Zealand, or a highly protectionist USA - even if they are services they could use.
If we leave the EU, then yes, we will no longer be shackled to them legally - just tied via ongoing business. But many of the other nations (or more accurately businesses within those nations) we might choose to start trading with will also be trading with the EU. They will then be treading very carefully not to get into deals that upset their other customer / supplier (the EU).
Interesting times...
- Australia
- Bahrain
- Canada
- Chile
- Colombia
- Costa Rica
- Dominican Republic
- El Salvador
- Guatemala
- Honduras
- Israel
- Jordan
- Korea
- Mexico
- Morocco
- Nicaragua
- Oman
- Panama50
- Peru
- Singapore
What the EU does do though is impose tariffs that vary depending on product, quantity and country of origin which is a form of selectively encouraging or hindering which products enter the EU and from where. Whether those are good filters, or bad ones is a matter of debate. The EU believes it's protecting its members in 'policing' things and at the same time, giving advantage to the businesses within the EU.
50% of our exports are to the EU though, so whilst being outside of them isn't a killer, we can't simply just start exporting elsewhere very easily. Over time, that can change, but it's not as simple as not selling car parts to Germany, instead we'll sell them to the USA. We'd have to adapt products and prices accordingly. But that's what business does right? - it just takes time.
Then there's the imports - same deal, most of them come from within the EU - we're heavily tied to them right now.
However people want to frame it, right now, roughly half of our entire international trade is with the EU, so any improvement or deterioration in our trading relationship with the EU has / will have a substantial impact short term. The optimistic view is that we need each other and even during an acrimonious split, neither wants to lose much, so a stalemate would be a fair outcome. The pessimistic view is that the EU has the edge over us, because it's acting as one block, and they are 50% of our entire market, whilst we are only 16% of theirs - that said, we are still their biggest single customer.
There is a third view though - and that is EU meltdown. If the EU collapses, then in theory it's every man for himself and the UK is a very strong position to take advantage. Of course, in such an event, it's very likely that the circumstances of individual members will change dramatically, in which case, it's a hell of market to predict. In that situation is less likely to be 'who comes out smelling of roses' and more likely to be 'who comes out the least injured'.
We should also remember that LOT of our exports are services, as well as goods. We aren't selling bananas here, we're selling highly specialised services in a lot of cases, services that don't transpose particularly well to Africa, or New Zealand, or a highly protectionist USA - even if they are services they could use.
If we leave the EU, then yes, we will no longer be shackled to them legally - just tied via ongoing business. But many of the other nations (or more accurately businesses within those nations) we might choose to start trading with will also be trading with the EU. They will then be treading very carefully not to get into deals that upset their other customer / supplier (the EU).
Interesting times...