Now how many times have we heard all these so called experts, leaders, etc claim this, or there will be tariffs on our exports and imports. and everything will cost more.
My question is why? Surely the UK Government (elected by the people) should decide what Tariffs should be applied, not some Eurocrat.
Ah, they then say, we cant control what tariffs other countries will charge on our products we sell to them so there…. That is true we cannot control what say the US of A charges for our import, likewise China and so on.
So how can we get around this little problem. First we need to look at some figures for trading to see what is going on.
This data is taken directly from HM Revenue & Customs.
The latest data for 2016 is January, February and March so this is recent and the amounts have been rounded to Millions.
So looking at this information we can see for the first 3 months of this year we have imported 35 billion more goods than we exported. So as any good businessman will tell you we have the upper hand in negotiations. If the EU wanted to throw their toys out of the pram and charge us tariffs for selling to them we could do likewise. Who would come out worse for this? The UK or say Germany. Germany net imports/exports to UK for this period is 7,457 million. I am sure the German car industry would be happy for the loss of trade with the UK as people looked at alternative cars.
Being in the EU not only means we have to follow their tariffs but it hinders the UK greatly if products are being dumped into the world markets too cheaply. Tata Steel any one. They can’t compete as the Chinese is dumping all their excess steel onto the markets. If we had control of our tariffs we could have imposed immediate anti-dumping duties to stop this and protect our industry. Ah, say the Remainers, cheaper steel means it will be cheaper for industries and so lead to lower prices. Sounds good but what is the reality. Heavy steel users buy forward in the market so the prices they have purchased have been fixed. The ones who are making money from this are the trading fraternity who like to buy cheap, store it and wait until the price goes up and sell it.
So on the 24th June when we finally have our freedom back what should we do with the EU when they start kicking off and threatening to block trade, raise tariffs and generally be a pain in the arse. Just tell Juncker or whichever one of the seven in charge is, that we will impose import tariffs but as we do not recognise the EU as a country we will only do this to Germany, France, Italy, Belgium and The Netherlands. Leave the other countries alone. This is the classic divide and conquer scenario. Imagine the clusterfuck that will go on. And if I was in charge of the UK the first thing I would do is to call up the POTUS and say, as our trading is roughly on par lets scrap all tariffs to each other and trade freely. That way we could also not sign up to TTIP.