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Showing posts from August, 2017

Free Trade Agreement - not such a big deal perhaps

I am wholeheartedly a Remainer. However, 'my side' can from time to time over-egg the dangers of leaving when it comes to Free Trade Agreements (FTA). The first thing to point out is that trade agreements work both ways. When Brexiters state ' they will still want to sell us their cars ' - a reference to VW, BMW, Renault, Fiat and Mercedes putting pressure on the EU to keep trade flowing - the only reason they might face tariffs will not be because of the EU mandating 'punishing' taxes, but the UK's own customs imposing them. It's the importing country who 'fines' other nations' exporters. In other words, if VWs etc attract tariffs, it's because the UK government applies them to force Brits to buy British cars. So when they try to make VWs and BMWs more expensive for British citizens to buy, that's not going to make them popular at home. It's not going to happen. Brits will continue to buy their French, Italian and German cars