Monday, 22 April 2019

We must decouple from the European Union and not enter the backstop

The UK has lots of advantages and if they are used cleverly to decouple from the EU, as well as the new freedom in a good bilateral relationship, then the UK could develop very positively – I’m convinced of thatRead here

Ueli Maurer Swiss Finance Minister FT 26 March 2017

We must decouple from the European Union

In 2016, we were faced with an extreme version of project fear. Such claims that if we broke from the European union's iron grip then we would indeed face dire consequences. Such consequences would immediately be felt by way of half a million job losses. But, another claim that has not come to fruition, which today has been swept under the carpet so to speak that is FDI “Foreign Direct Investment”, it was claimed that FDI would dry up plunging the UK into a form of Banana republic. 

Here we are in 2019, having enjoyed the best employment rates on record, jobs have grown significantly. Almost daily there is positive news, even this week a headline read that all job vacancies since the referendum have been filled by British Nationals. Now for the papers to print such a headline would be deemed racist, but, is it? How can it be, as the UK is already a cosmopolitan, eclectic mix. Nevertheless, the headline makes good reading, in part vindicates leaving the European Union's iron grip. Of course in addition the headline employment rate makes a compelling story also in support of vote leave.

Foreign Direct Investment "FDI"

Foreign Direct Investment “FDI” not only did it not dry up, investment  have quadrupled coming from across the world. But here's the catch and this should embarrass remainers: we have had record investment since the referendum! Last year our Foreign Investment was second only to China, passing the FDI into the USA. Bizarre as tbis will seem European Union conglomerates are placing investments in the UK looking for a better future. With such a raft of good news why do we still have these daily battles with remain and Theresa May? 

The Japanese perhaps were always seen as the biggest risk to our financial well-being. But, apart from headline grabbing statements exploited by the media this has been no more than an irritant played out to sell newspapers, metaphorically speaking. 

Yes it's true Japanese have over the years invested in the UK to access the European market, but tariffs are not the only reason the Japanese are here.  The UK has a great climate for manufacture which is interference free, a stable environment. Even with the Parliament shenaniggans this continues to be the case. 

The Japanese are not known for their astute interpretation of all things European. In the late 1990s they predicted with equal vigor gloom, despair, almost apocalyptic if we were to snub the Euro. Of course that was not the case. To continue with this "orchestrated" despair we hear noise from French conglomerates, German conglomerates such as BMW who all claim in somehow unison, they predict the worst for their businesses that are in the UK. Of course one assumes there was no political pressure brought to bear on them to make such statements. But, since we seem to be enjoying a boom period. Our economy has outperformed even the stellar German economy within the Eurozone, which we all know is heading for recession.

Free Trade Agreements

It is absurd to assume that we the UK would collapse as an economy even if we end up with a situation of paying tariffs to enter the European markets. This is simply not true! For one, we run a surplus, we sell to European Union two-thirds of our product to that of the European Union products sold to the UK, in real terms, per year we run a £90 Billion deficit. Seriously can Germany walk away from that. On a second point, there are 100s of countries who sell to the EU on WTO including the USA, weakening the argument further Japan also sells product from Japan into the EU with little or no issues. So why is WTO so onerous a prospect? Why do we assume that when entering on WTO we remain on WTO. Rationally, negotiating a Free Trade Agreement can this not be the adult way forward?

When you analyse the-remain argument there really is so little of substance to their points, apart from the term MY! It is always about them and not the collective. Their supply chains, their holidays, their future. Indeed, their arguments are so weak they always resort to insults, such as:

We are Xenophobic, little Englanders, low caste (if such a thing exists). All I can say to that is; many in a number of constituencies with large South Asian populations they delivered Leave votes, including Luton (56.5% Leave), Hillingdon (56.4% Leave), Slough (54.3% Leave) and Bradford (54.2% Leave). All have South Asian populations of 25% and above. It’s not unreasonable to think that such Leave votes could not have been delivered without a significant number of Asian voters opting for Brexit. Read here

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