Home > Uncategorized > Matt Ridley. A robust argument for post brexit trade

Matt Ridley. A robust argument for post brexit trade

Trade and trade agreements have frequently been cited as the biggest issues surrounding brexit. As I have posted before there has been some fairly astonishing ignorance surrounding this subject with seemingly little understanding of the actualities of trading from many of the so called “remainers”.

This strongly argued piece from Matt Ridley should go some way towards banishing certain myths most especially the notion that being within the EU gives access to wordlwide trade agreements.

Here are some excerpts

Being in the EU has meant having no trade deals at all with America, China, Russia, India, Brazil or just about any large economy, despite decades of desultory negotiation. This hasn’t stopped us trading with them; hasn’t stopped them getting “access” to the single market — that is, selling the same product throughout Europe; hasn’t required them to join the protectionist single regulatory zone; won’t stop us having such access. The truth is, if it’s trade deals you want, the EU is the worst possible entity to be part of: it’s done fewer trade deals than most countries.

We just don’t know how competitive British science, technology, medicine, even precision agriculture could be, once freed from the top-down dirigisme of Brussels with its myriad rules designed to stifle innovation and protect big companies from upstart competition. The distinguished medical scientist Sir John Bell says: “Britain is more inclined towards a relatively liberal risk-based regulatory environment that allows fields to move quickly — to reflect on ethical issues but not to over-regulate. The EU, by contrast, has a record of deep regulatory conservatism, attempting to legislate and control many aspects of science that are not deemed here in the UK to present a significant danger.”

A slight rider to the following might be that more expensive imports due to a weaker pound  would perhaps fuel inflation

It is now more than three months since we voted to leave the EU. Neither Mark Carney’s promised recession, nor George Osborne’s promised punishment budget have happened, or look likely to. Every stock index, producer managers’ index, growth forecast, employment rate and house price index that was supposed to plummet has gone up instead. Service sector growth is much higher than forecast. Only the pound is down, giving us a perfect competitiveness boost without significant inflationary risk.

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