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Old 07-01-2013, 14:08   #26
Chris
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re: [Update] Cameron promises EU referendum by October 2017

Quote:
Originally Posted by Damien View Post
It's not that simple. There are costs to trading, tariffs and so forth. It costs money to trade, costs we do not face as a member of the EU. People won't trade with us if they can trade with other EU member states at a lower cost. Companies than need to import items might move their operations into mainland Europe to avoid such costs. They'll take their jobs with them.



There would be benefits to leaving the EU as well but the people who portray it as having no advantages are lying. There will be a cost to pay for leaving.
This is just standard-issue scaremongering.

A couple of facts about our balance of trade with the EU. Firstly, it may receive almost half of all our exports, but a very short time ago it was comfortably more than half. It has been dropping, and continues to do so. Meanwhile other parts of the world are booming, particularly the Commonwealth, a group of nations we have strong historical and current ties with, but cannot make our own trading arrangements with, because we have surrendered that ability to the EU.

Secondly, we are a net importer of goods from the EU. The EU needs us as a market more than we need it. The idea that we could negotiate anything less than favourable terms for continued access to the single market is disingenuous to say the least.

Damien, your claim that "People won't trade with us if they can trade with other EU member states at a lower cost." doesn't stack up, for a couple of major reasons. The first is that in a capitalist market, which, more or less, the world is, sellers in the market must find constant growth. Even if they sell into 'cheaper' markets first, the need for growth will drive them into 'expensive' ones also. The idea that the UK is suddenly going to be starved of consumer products is just silly.

Following on from that, you're making a pretty huge assumption about the relative costs of selling goods within and outside of the European Union. The rules of the single market do not promote freedom and ease of access. For the most part, they merely use consumer freedom and protection as a smokescreen to disguise vested interests. The regulations make it costlier for importers to sell in EU markets. Getting some of those regulations off our statute book would give us a competitive advantage.
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