MercoPress. South Atlantic News Agency
Hard Brexit proposal to remove all trade tariffs and barriers sparks strong controversy
Removing all trade tariffs and barriers would help generate an annual £135bn uplift to the UK economy, according to a group of pro-Brexit economists. A “hard” Brexit is “economically much superior to soft” argues Prof Patrick Minford, lead author of a report from Economists for Free Trade, which insists that eliminating tariffs, either within free trade deals or unilaterally, would deliver huge gains. Read full article
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Disclaimer & comment rulesEbell isn't an economist, but an idiot. Eliminating all the tariffs, standards, etc. will lower prices on imports, and give the British public a considerable drop in the cost of living, which is all the more desirable in the few years of economic turbulence and uncertainty that will come with Brexit, until things adjust to the new conditions. Some protected businesses will probably go under, but if they can't compete with foreign producers, they should be doing something else anyway. Nor, is Britain likely to lose a substantial amount of its trade with EU countries. If they didn't have use for the British products they import, they wouldn't have been buying them, and unless the EU taxes them until they are non-competitive and/or buyers find other sources at better prices, they will continue importing most of what they've been getting from Britain.
Aug 21st, 2017 - 12:01 pm - Link - Report abuse 0Prof Minford is right that freeing-up trade as much as possible will give a boost to the British economy when it's most needed, and raise the general standard of living in the long term. The non-competitive businesses need to be shaken out anyway, and either find a way to compete, or quit. It's a waste of labour and resources to produce something that can be bought for less somewhere else -- they should be diverted to something profitable.
“It's a waste of labour and resources to produce something that can be bought for less somewhere else .”
Aug 21st, 2017 - 02:46 pm - Link - Report abuse 0There is always someone that will produce products cheaper....China for Instance, but usually the quality is lower...
“Ebell isn't an economist, but an idiot.” - says a random non-economist idiot posting on the internet.
Aug 21st, 2017 - 05:12 pm - Link - Report abuse -2If you want to lower cost of living, reducing VAT would be a lot more effective. I don't expect this plan to be adopted, but if it is the very people who voted for Brexit will be harmed the most by it, which is some sort of justice I suppose.
“Nor, is Britain likely to lose a substantial amount of its trade with EU countries. If they didn't have use for the British products they import, they wouldn't have been buying them”
This is nonsensical. If the EU is as protectionist as the Brexiters claim, they are buying British products because the cheaper competitors from outside the EU are forced to pay tariffs. After Brexit, they will put the same tariffs on British products making them less competitive.
If everyone did as he suggests, it might actually work, but since tariffs act as a subsidy to their country's industry, removing them unilaterally puts your own industry at a disadvantage. This is why countries generally don't do this, instead they seek trade deals like the TTP.
Demon Tree
Aug 21st, 2017 - 05:28 pm - Link - Report abuse 0“says a random non-economist idiot posting on the internet.”
It's a slippery slope insulting posters that haven't insulted you and are merely expressing their opinion...
I like to be...reciprocal...
...I know what you are thinking, but I'm entitled having been insulted by almost everyone at some time or other...
I've built up an almost limitless supply of insults to dish out when appropriate...
...and saving them when I'm feeling magnanimous....;-)
“It's a slippery slope insulting posters that haven't insulted you and are merely expressing their opinion.”
Aug 21st, 2017 - 06:58 pm - Link - Report abuse -1That was me expressing my honest opinion. It really annoys me when random people who plainly have no idea what they're talking about claim to know more than actual experts who have studied the subject.
But you're right, and I promised myself I wouldn't join in with the insults when I started posting here. Didn't last long, did it?
Am I on your 'insultable people' list?
You always appear to me to be a fair minded poster, you have never insulted me and so I have never insulted you...
Aug 21st, 2017 - 10:36 pm - Link - Report abuse 0I have noticed you have taken a lot of attacks and insults in your time and risen above them...unlike myself.
So I was surprised to see you on the attack that's all...
Best to keep promises...especially to yourself....
Well thanks, I guess. It's hard; it's so tempting to tear into someone when they are attacking you. But I will keep trying. At least with text you have time to reconsider before posting.
Aug 22nd, 2017 - 12:28 am - Link - Report abuse -1By the way, I don't think you're an idiot, although you do get very offensive sometimes. ;)
Back on topic, what do you think of the idea of removing tariffs unilaterally? I think I read somewhere that Gove is in favour of this plan, although he doesn't seem especially likely to become PM.
The question is why is this piece appearing in Mercopenguin, a British government propaganda organ supposedly devoted to America, South America and the “South Atlantic”?
Aug 23rd, 2017 - 01:55 pm - Link - Report abuse 0If we remove all trade barriers will other countries reciprocate? They could still keep up barriers against our goods while receiving a bonus of free entry to our market. A good deal for them !
Aug 23rd, 2017 - 08:42 pm - Link - Report abuse 0It sounds rather altruistic on our part. What have we as a nation to gain from this ?
Duties and anti-dumping duties ensure that we all play by the same rules.
No. I think they legally can't, because they aren't allowed to remove tariffs for just one country's goods unless they have a proper mutual trade agreement. So yes, it would be a good deal for other countries. I believe there are some advantages but AFAIK no country in the world follows this policy exactly, and there are probably good reasons for that.
Aug 24th, 2017 - 12:31 pm - Link - Report abuse -1Commenting for this story is now closed.
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