‘The EU suits the UK just fine’, argued a commentator in the Guardian. They were just asserting, but no, it does not.
British manufacturers can never compete on equal terms with German
manufacturers in sales to continental Europe. They start off with a
transport cost penalty of about £100 per cubic metre shipped. That
figure rises, the further the producer is from a Channel port with
frequent RoRo services. It is a simple fact of geography. Denying that
does not change the situation.
Then there is VAT, a condition of
being in the EU. It would be difficult to think of a more damaging tax.
Like all taxes with the exception of taxes based on property values, it
takes no account of the geographical factors which affect ability to
pay tax, and consequently amplifies the effect of regional economic
disadvantage. Why the EU persists with this terrible tax is a mystery,
since the EU itself is aware of the extent of the fraud which it
generates. It is not inherent to the EU project, but the fact that its
governing bodies take it as an unchangeable given gives no confidence in
the organisation.
The same applies to the Single Market's tariff
regulations, applied against all outside countries, which UK exporters
will now have to face. It is not understood that the main victims of
tariffs are consumers in the countries INSIDE the tariff barrier, who
have to pay through the nose for everything, and, worse still,
manufacturers who have to pay more for components and raw materials,
which makes them less competitive.
The overall effect of this is,
as intended, to shift the balance of trade to within the EU, which of
necessity reduces the proportion of trade with the rest of the world. If
people in a country want to export, they have to import in order for
the export destinations to have the foreign exchange to purchase that
country's exports. The primacy of imports over exports is not understood
these days due to the resurgence of the mercantilist thinking which
dominated EEC trade and economic policy from its inception, and which is
now the driving force behind Trump’s policies, where the losers are all
US producers apart from those in the protected sectors. Because of the
logistical factors I referred to above, the UK cannot afford the
reduction in ROW trade, neither as importers nor as exporters.
It
goes on and on. UK and Continental legal systems are based on different
principles and are fundamentally incompatible. There are, for example,
features of the legal system in Sweden, which anyone familiar with the
UK system would find shocking, including the length of time spent
remanded in custody, and the lack of a jury system. I know personally of
one case of suspected attempted murder which was not even brought to
court, but which in a British court would have been thoroughly tested by
a prosecution witness before a jury.
If you think the EU structures suit the UK just fine, you need to take a closer look.
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