tisdag 5 december 2017

WTO rules and the Irish border

Remainers refuse to accept that the problem over the Irish border is one created by the way the EU Single Market operates and is in principle an EU problem.

When I posted under this Guardian piece that "The Republic don't want goods coming INTO their country from the post-Brexit UK. It's their problem and people in the Republic are the losers. I don't recall any threats from the UK to penalise Kerrygold butter etc and make it more expensive. What would be the point of putting up prices in UK shops unnecessarily? Getting out from under the tariff wall is one of the most important reasons for Brexit. UK consumers should not be forced to pay through the nose for stuff", responses were mostly offensive, or they referred to WTO rules
  • "Absolute bollocks...... complete and utter." 
  • "why don't you look up WTO Trade rules to see what tariff free trade will await you when you hard exit from the EU. Way to shoot yourself in the head uk. Clap, Clap ,Clap."
  • "Under WTO rules if you let in Kerrygold butter tariff free you have to allow in butter from every country in the world tariff free... goodbye british farmer." 
The arrogance and rudeness of so many of those in the remain camp is stupendous, which in itself gives no credence to what they say. If you ask people to quote the relevant WTO regulation, they cannot, so just about all the commentators are barrack-room lawyers. "Goodbye British farmer" is interesting, though, because Minford has said the same thing. It cannot be so. UK farm rents range from £50 to £250 an acre. This is a "cushion" against lower prices. As food prices fall - to the advantage of every household in the land - we need to be clear about who is paying for the present situation - then farm rental values drop. At some point, the poorest land is no longer rent-yielding and drops out of use as farmland. All other rents drop likewise. The tide is a precise analogy for the phenomenon, which is the classic situation as described by Ricardo. It is not a case of "goodbye British farmer".

There is more. If the exchange rate drops, then British farming gets a boost, as home-produce food replaces imports. Exports become attractive. The threat of "chlorinated chicken" and "hormone beef" is also an opportunity for British farmers to bring to market food which they can guarantee is wholesome and free of suspect chemicals. There are no laws against labelling and creating brands based on their quality.

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