23 August 2017
Dr Peter Holmes Reader in Economics at the University of Sussex and Fellow of the UKTPO
The government’s new paper “Continuity in the availability of goods for the EU and the UK – a position paper“ acknowledges the problems that will be created by a hard Brexit in which there is a disruption in the systems for verifying compliance with mandatory standards.
The problem is that its substantive proposals deal with only the most immediate disruptions in the sale of goods that are already in the supply chain at the moment of Brexit. The official description acknowledges this: “This paper outlines the UK’s position on continuity in the availability of goods in UK and EU markets at the point of EU exit” (my italics).
Yet, the key requirement for the British economy is that there needs to be a permanent system in place for ensuring that UK product inspection systems are recognised by the EU for goods made after Brexit. (more…)
Charlotte Humma August 23rd, 2017
Posted In: UK- EU
21 August 2017
L. Alan Winters CB, Professor of Economics and Director of UKTPO.
Economists for Free Trade (EfFT) are back, offering the Introduction to an unpublished – and hence unknown – report that claims £135 billion benefits from Brexit. It not only repeats the previous claim that GDP will increase by 4% if the UK adopts free trade, which I characterised as ‘doubly misleading’ in April, but it adds in an extra 2% from ‘improved regulation’, 0.6% from our net budget contribution to the EU and 0.2% from removing the ‘subsidy to unskilled immigration’. It also promises faster growth as well.
I’ll come back to free trade, but, first, what regulations will be improved? We are not told. Similarly, what subsidy to immigration? Who knows? The budget contribution to the EU may be saved, but we will need to spend much of it on providing replacements for various EU regulatory bodies such as the European Medicines Agency, on negotiating new deals on things like airlines or nuclear isotopes, supporting farmers (which EfFT apparently accepts), on customs formalities on trade with the EU, on managing alleged unfair trade and on trade disputes, etc. Until we see the details, you have to doubt these numbers. (more…)
Charlotte Humma August 21st, 2017
14 August 2017
After Brexit, the UK will have to leave the EU Customs Union (CU) and become a legally separate customs territory. It might then, however, seek to create a new Customs Union with the EU to cover their mutual trade.
The UK Trade Policy Observatory at the University of Sussex (UKTPO) has produced this short animated video that explains what this entails, and what kind of an agreement the UK and the EU would need to establish in order to achieve the same level of trade costs as we have now.
Ultimately, the video explains, a Customs Union will not produce ‘frictionless’ trade without re-creating several aspects of current EU membership. With Brexit negotiations already underway, it emphasises that maintaining a customs union is just one part of the story; and not, by itself, the be all and end all for achieving a smooth trading process.
Tina Perrett August 14th, 2017
Posted In: UK- EU
26 May 2017
Compiled by Fellows of the UKTPO
Brexit will leave many areas of UK policy open to change. International trade policy is among the most important of these for UK prosperity and also among the most immediate because the status quo cannot simply be extended. This is the fifth in a series of blogs reporting what the major political parties say about trade policy in their 2017 manifestos, as they become available.
The UK Trade Policy Observatory (UKTPO) has set out a series of issues that it believes should be considered in any election manifesto that might form the basis of the UK’s future trade policy. The table below checks whether or not the UKIP Manifesto mentions these important elements explicitly or implicitly. Following that we offer a brief commentary on the treatment of trade policy in the manifesto. (more…)
Tina Perrett May 26th, 2017
Posted In: UK- EU