The EU Single Market Issues

The EU single market

Patrick Minford's - Economist and advocate for free trade explains:

"The Single Market is simply the geographic area within which EU regulation creates ease of doing business and around which the EU creates a protective trade barrier as well as mandating free migration. Thus to be ‘in’ it requires that one submits to the regulation, the protection and the free migration".

To explain in more detail it is a single market that all can sell into provided each market follows the regulations as set out by the EU regulations. It is also a protectionist market that prevents products and produce from landing in Europe undercutting produce grown in the EU. Such as: Oranges from South Africa, Bananas etc. These can be shipped into the EU but are subject to tariffs. Hence, why Jacob Rees-Mogg refers to cheaper food, clothing and footwear. We can lift these protectionist tariffs.

I guess you have to ask was this Baroness Thatcher’s vision as she pushed the single market agenda. The simple answer is no! Baroness Thatcher was an advocate of few regulations and envisaged a market as such. Since the introduction of the single market regulation has gone through the roof.

To be outside we can reduce the burden on business. But! We have to adhere to EU regulation if we are to sell into the EU. This could mean two types of manufacturing process. So why are we leaving? It's simple much of our business is outside of the EU. But currently today we have to adhere to all this regulation, this is a substantial burden on business. Look to our growth with the EU it has been a lack lustre event at best, since 2008 we have dropped from 55% down to 44% of our exports. Meanwhile, WTO countries have increased 27%.

On a point of note, UK exports between 1973 to 1992 grew sharply under the Common Market. Since joining the single market our exports to the EU have declined sharply.

The myth in all of this is the way it's portrayed.  There is a reverence paid to the single market. It's as if, ifwe are not inside we will not be able to trade. Therefore, we should be at least partly in, partly out, or even as though we should have access for parts of the week and not other parts. This is a myth! Everyone has access to the single market, whether it be India, USA or Indonesia.  All trade perfectly well inside the EU.  And, as I've said before they in fact trade better under WTO.

The EU Euro zone GDP is poorly performing and has done so since 2008. Its underperformance is significantly below that of the USA, Canada and the UK. Today it would appear they will slip into recession.

We must leave, and leave cleanly!