fredag 30 augusti 2019

Backstop boloney

In a rational world the alleged need for the backstop would have triggered an urgent review of the regulations governing the protectionist Single Market, which are the reason why there needs to be a customs border; the UK government has indicated that for its part, it has no objection to the free flow of goods inwards.

A substantial proportion of IMPORTS to the Republic come from the UK. If they are required to cross the EU's tariff barrier, it is consumers and manufacturers in the Republic who will be faced with the extra costs of the tariffs, or the expensive alternative of sourcing goods from mainland Europe, thereby incurring added transport costs.

Why this has been so rarely referred to is a mystery. I suspect the reason is the return to dominance of seventeenth century mercantilist thinking. Ireland will be in the same situation as countries on the eastern marches of the EU such as the Baltics, Romania and parts of Poland, which are cut off from their nearest suppliers and customers; it is an important reason why the economies of those countries has failed to develop and have been exporting their populations.

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