The business world and the majority of MPs have devoted lots of media time in warning of the danger of a No Deal Brexit despite this a significant minority still want a No Deal Brexit.
In fact, according to a YouGov poll are 43% against a delay to Brexit with just 38% in favour of a delay despite the fact not getting an extension would most likely result in No Deal. Support for a No Deal currently stands at 28%. Most Brexiteers do
Warnings of the economy being £900 million worse off in 2019 alone and thousands of companies fleeing to European shores may look like scaremongering to Brexiteers but simply they’re not. The fact they are readily dismissed shows a problem with the nation’s mindset as well as its media.
The main implication of leaving the single market and customs unions is the introduction of tariffs on trade. A tariff is a tax on an import or an export and currently, we pay no tariffs when exporting or importing to the EU.
Tariffs will hurt UK businesses who sell things in Europe. To keep making the same profit they made previously companies would have to up their prices. This makes their goods less competitive and lowers their income. You might expect this means only countries that trade in tariff heavy goods in the EU will be affected but that is not the case.
Everything is connected to everything else, in economics I’m that is the global fear right at the momentJohn Clarke
While they will be affected most, which is why manufacturing companies like Airbus and JLR are particularly worried, their problems will affect the whole economy as less spending from these companies creates circles of decline. It’s worse still for companies that ship goods around the EU as goods are slowly built such as engines.
We are already seeing economic damage and we haven’t even spoken about our own tariffs.
Leaving the EU means putting up tariffs with Europe. WTO rules mean we cannot give preferential treatment to any nation without signing free trade agreements, which we won’t have any of. We are able to lower our tariffs and this supposedly will decrease prices back home.
However, there are two problems with this. As mentioned most of our trade is with the EU and will be with the EU for many decades to come. The simple reason for this is geography. Therefore, there can be no improvement in the trade relationship for half our trade. Dropping tariffs for the other half might have benefits to
In honesty to head for a No Deal and drop our tariffs would be a perverse injustice of the referendum result. The result was a strong backlash against globalisation and to say the will of the people is more globalisation does not fit the result.
Tariffs will cause problems for trading in goods but