Whos Afraid of the WTO?

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According to the International Monetary Fund, the 28 countries currently part of the European Union accounted for 34 per cent of world output in , but this had fallen to less than 22 per cent by and will almost certainly continue falling. So it makes clear economic sense for the UK, as a major trading nation, to position itself to capitalise on these global changes.

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Who's Afraid of the WTO - GATTzilla Chapter 6 Whos Afraid...

The unilateral freedom to develop trade agreements with fast growing non-EU countries is a strong economic reason in itself for leaving the EU, as membership of the customs union stops us doing that. But there are other economic reasons for Brexit which are powerful in themselves.


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And, thirdly, there should be a Brexit financial dividend as the UK is currently a significant net contributor to the EU budget. I have regarded this suite of economic benefits as a persuasive case for Brexit for many years.

Who’s afraid of no deal? Trade policy post-Brexit

But I am fully aware that, despite the secular decline in its importance, the EU remains a major trading partner. The EU share of exports, which had been nearly 51 per cent in , had fallen to just under 45 per cent by But 45 per cent is still significant.


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It would be beneficial to us and beneficial to our EU trading partners, given their huge trade surplus with us. These would commit the UK to compliance across a wide range of EU regulations and undoubtedly restrict our ability to gain a competitive boost post-Brexit.

Most trade agreements today are about far more than tariffs, and deal with the reduction of non-tariff barriers which arise from differing regulation.

Who's Afraid of the WTO? - Oxford Scholarship

Where do we go from here? I would like to think there is still time to negotiate my preferred Canada-style FTA, but I fear that it is politically too late. Too many concessions have been made that cannot be unmade. So there are two main options. The first is for the government to agree a trade deal based on Chequers, however loosely. This would be, to put it kindly, severely sub-optimal in economic terms.

Indeed, a Chequers-style agreement could be worse than being a full member of the EU: many of the restrictions of EU membership without any say. It is not some dreadful leap into the dark. It is the forward-looking, global option. Forgotten password? We'll even send you our e-book— Writing with punch —with some of the finest writing from the Prospect archive, at no extra cost!

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