Re: EU "Stop BrExit" Next Phase
Originally Posted by
Solasch
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If you exclude the usa, there hardly is a wto trading deficit (and a little trade surplus with usa).
The UK is an interesting market and since the UK intends to minimize tariffs, that seems likely to continue. But due to EU tariffs the UK may lose a large share of their european market. Which some will think can easily be replaced by new markets.
Why does the EU want to make it more expensive for itself, firstly, and secondly, as I explained before exchange rates can reduce or completely negate in some cases, the tarrif amount applied to goods.
All you will do is have the UK put tarrifs on EU imports and have a different arrangement for the USA and the rest of the world.
The EU problem is a much bigger one because it will need its exporters to the UK to lower its prices to compete with the rest of the world. That means, less profit, less tax revenue, less jobs, less wage growth etc etc.