The UK will now be in a position to make its own stupid rules, but if we want to sell stuff into Europe it will also have to conform to EU stupid rules as well. I guess if we make things to sell internally in the UK then manufacturing will have only one set of rules to follow. Progress indeed for businesses that do not trade in major international markets. Many people fail to understand that the UK is a major trading nation. The economy lives and dies by how we trade with the rest of the world. We are not big enough to retreat into isolation.
The elephant in the room is the market for services rather than goods. Services are by far the biggest part of the UK economy and this follows the trajectory of most developed economies. If anything, the UK leads the way and it needs an international framework that is open to trading is services.
Boris has admitted that this deal does not deliver what the UK needs regarding services. That will be a major obstacle to economic development, we will have no say in the development of this market in the EU and we will see France, Germany, The Netherlands trying to develop services within the EU at the expense of the now excluded UK.
Financial services in the UK generates enough tax for the UK goverment to pay for the NHS, about £129 Billion. That is the golden goose of the UK economy. Did we hear anything about that? No, the tough nut to crack was about not upsetting the Fishing industry which is small fry indeed.
The Brexit debate has always been about appearances, symbols, great principles like sovereignty and securing the borders from unwanted foreigners. The EU has been painted as the target for all of these concerns and the simplistic solution is to simply abandon it suggests that all these existential problems simply go away.
When really EU membership is about trade. You pay £10Billion and get to be a join the largest trading block in the world. This always seemed like a good deal to me, a bit under 1%GDP. Rather than stay and change the EU to be more oriented towards a service economy, build a European electricity super-grid for trading our spare wind power. Create gas grid to move green hydrogen around and create and develop an international trading network. An integrated charging network for EVs, Finish off the Galileo European GPS project that the UK did so much to build. Carbon trading…There is a list of continental scale projects that make a great deal of sense for the economic development of Europe of the long term, the next next decades. We are now outside these emerging trading networks.
Was any this debated during Brexit? No, the issues the politicians debated were trivial in comparison. Populist trigger issues that suggest a simple withdrawal from the EU is the answer to all the absurdities that Boris Johnson wrote so much about when he was based in Brussels as an anti-EU hack journalist with friends in high places.
Both the Conservatives and Labour refused to engage with the EU and seek to win friends and steer the direction of the EU away from petit bureacracy and national interests towards to the development of a internal market and a block to match the bargaining power of the huge economies of the US and China.
They gave up on the EU and were happy to see the Brexit party mop up the protest vote so the UK was represented by an antagonistic bunch of self interested businessmen, supported by tycoons who like to play politics by pulling strings and using their influence over old and new media to persuade the British public that the EU was an expensive absurdity.
It is easy to cancel, break away, abandon or destroy something. It takes rather more effort to build something, especially when it is based on trust. What country will take the UK seriously with regard to trade ideals after this four year debacle?
Very little has been said about the future of the UK outside the EU, except to suggest that it will inevitably be rosy and prosperous despite being deattached from this big trading block on our doorstep.
Where is this plan? The farmers, the fishermen, the tradesmen have all been led to believe that all their complaints about bureacracy can be laid at the door of the EU and as soon as we are out, there will be a laizezz-faire policy and they can do what they want to grow their businesses.
These small guys will not be up against not the EU, but the UK establishment that favours big companies over small traders, big landowners and big fishing quota owners. There will be new rules defined by the vested interests that employ the best lobbists, contribute the most to party funds and are most skilled at regulatory capture. Those who financed Brexit will be looking for their pay-off and the small guy is certainly not going to be a part of that club. They were simply used. The images of the plucky small British guy railing against the Eurocrats was compelling.
That is going to become more apparent in the months to come and we learn just what we have lost and how reluctant the UK government is going to be to replace any finance from the EU from the UK budget.
The UK is hideously in debt because of COVID and now has to desperately restart its economy as soon as possible, if it can get a vaccine rollout done in the next months.
Brexit will tie one arm behind its back as it seeks foriegn investment to develop the economy because we have introduced significant barriers to international trade with our biggest neighbours. This deal is far, far less that what we had.
But at least we can be spared all those silly stories about the EU regulating the shape of bananas and what constitutes a sausage that did so much to paint the EU as an absurd irrelevance in the eyes of the British public.
I want to see an intiative from Boris and the Conservatives about the direction of the UK economy and their plan for developing it so the nation prospers. How they care going to convince the rest of the world the UK is a good prospect for investment and development of new sectors.
For the past four years they have spend most of the time sabotaging the economy, undermining the countries reputation, leaving its integrity open to question and blaming our biggest trading partners for holding the UK back.
So…What will the UK do wrt Brexit?