View Single Post
  #1135  
Old 04.06.2016, 23:20
Phil_MCR's Avatar
Phil_MCR Phil_MCR is offline
Forum Legend
 
Join Date: Oct 2009
Location: Basel
Posts: 14,308
Groaned at 277 Times in 183 Posts
Thanked 17,718 Times in 7,479 Posts
Phil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond repute
Re: The Brexit referendum thread: potential consequences for GB, EU and the Brits in

Quote:
View Post
The problem with percentages is they don't tell the whole truth. In pure money terms, Germany has a trade surplus with the UK of 51 bn, second only to the US at 54 bn and the whole of the EU has a surplus with the UK of 92bn. It's so heavily in their favour that there's no way they will jeopardise that and truth is they can't afford to. They'll already have to find an additional 12bn nett that the UK pays in so they'll be desperate for a deal.
Those are numbers, but people are making the mistake in thinking that the trade will stop.

One difference when the UK leaves is that some goods would be subject to tariffs in both directions. I would expect that for a large part of the numbers given, the tariffs are already zero, meaning little change.

Some big numbers will be on cars and wine (hitting germany and france).

Assuming no deals to maintain zero tariffs, the UK would win out in collecting more tariffs.

Over time, you might see then a shift (for example more domestic production of cars).

A big win for the UK would be that we can tailor the tariffs with external countries.

The UK could also buy food from non-EU producers without the distortion of high EU tariffs designed to protect EU producers.
__________________
By replying to this post, you hereby grant Phil_MCR a royalty-free license to use, in any way, anything posted by you on the internet. If you do not accept, stop using EF and delete your account.
Reply With Quote
This user would like to thank Phil_MCR for this useful post: