One of the popular justifications for staying in the EU, often quoted by the Bremain camp (also referred to recently as Remainians) is that when we #Leave, the EU will impose import tariffs on our goods which will hurt British business.
Here are four reasons why this will not happen;
- Imposing higher tariffs as some sort of pecuniary penalty is against the World Trade Organisation principles of non-discrimination – it is against WTO rules.
- If the EU did impose such penalties, then we could impose the same in reverse which would impact the EU’s fragile economy and the estimated 7 million EU jobs that rely on trade with the UK.
- If tit-for-tat tariff increases were to occur, since the EU exports more to us than we do to them, we’d actually be better off.
- The sort of tariffs currently being charged by the EU to outside countries that don’t have a free-trade deal are very low – in the region of 1% – 4% of the value of the goods. We export roughly £200bn worth of EU goods each year so the cost of the extra duty would be £2bn – £8bn which is less than we pay in EU membership alone, never mind the indirect costs of EU regulations and directives.
And here’s another thought for those people that believe this will happen; If the EU imposed financial penalties on the UK for leaving, that would be an incredibly spiteful and vindictive thing to do – do you really want to side with such a nasty group of people?
It would be tantamount to bullying and blackmail on a national scale and yet the In camp’s answer is to kow-tow to the bullies, pay the blackmailer and capitulate to the demands of the EU. Well I’m sorry but I believe we’re better than that . . . and Better Off Out.
Here’s a bit of further reading if you are interested;