The next general election in the United Kingdom is scheduled for May 5, 2022 and many are beginning to wonder whether Brexit will be completed by that date.
Of course, with a new Prime Minister at the helm starting July 23, 2019 there is the chance that injecting new blood into the ongoing Brexit debacle will finally get the UK over the line and at long last(!) allow the country to become all that it can and should be.
After 3-years of economic uncertainty that’s caused harm to the UK economy and to the other economies depending on a strong British economy (such as the Republic of Ireland) it will be refreshing to know that restoring the UK economy to the roaring lion it once was is on the horizon. And that’s a good thing.
Let’s Talk About the Benefits of Brexit for a Moment
With the passage of time, some Brexit benefits may have faded in the minds of some. Hey, you’re busy people and you’ve got lots on your mind, so let’s refresh, shall we?
- The UK will be able to sign as many free trade deals as it likes. Many countries including the Commonwealth of Nations countries, the USA, the CPTPP countries and more have all said they’d like free trading arrangements with the UK. Also, the African Union, MERCOSUR (an Atlantic Ocean-facing South American trade bloc) and the Pacific Alliance (a South American trade bloc fronting the Pacific Ocean) want trade deals with the UK in the immediate post-Brexit timeframe. GCC countries too, have expressed an interest in improved UK trade. Impressive, as those countries in totality represent about 4.5 billion citizens. And if you’re a moneygrubber like me, you don’t think of those people so much as ‘citizens’ of those countries, you think of them as ‘potential consumers’ of UK products and services. Hehe. (But if ‘we’ don’t fill their orders — then ‘some other country’ will) Consequently, if UK GDP doesn’t subsequently improve by £1 trillion within 5-years, Britain’s business community is doing it all wrong. Get used to seeing UK exporters selling record amounts of goods and services due to the new trade opportunities presented by Brexit.
- The UK will again control who is allowed to enter the country and be able (and allowed!) to properly police its borders in the same way that every normal country in the world polices their borders. At this point, the UK border force and the country’s police and security services have some rather large gaps in their information — as to who’s in or out of the country — due to the EU’s lax (irresponsible?) border and immigration policies. Commonwealth nations stand to gain the most from Brexit as many of them are rapidly developing nations whose young people may enjoy gaining streamlined access to seasonal work visas, returning home at the end of each season with some hard-earned cash in hand and a newfound appreciation for the opportunities the UK affords decent and hardworking Commonwealth citizens.
- The UK will again be in full control of its own laws and its courts. And no longer will a situation exist where the UK surrendered some of its hard-won sovereignty to a foreign power — which is expressly forbidden under the UK’s constitutional framework by the way. What kind of politicians would willingly surrender the sovereignty of their own country to a foreign power, and an economic competitor power at that? None! (Well, none… other than the pollyanna, globalist, snowflake generation of British politicians in power when the UK joined the European Union. And all of it done without the benefit of a referendum until 23-years later) Shameful in the extreme! Heads should roll. They won’t. They should. But as long as it gets straightened out before the next UK general election I’m fine with letting bygones be bygones.
- The UK will no longer pay an average net payment of £10 billion per year to the EU. Over 10-years that’s £100 billion (not £100 million, but billion!) Who could’ve negotiated such a deal? Only British-hating UK negotiators, that’s who.
- Cheaper food for UK consumers and a wider selection of goods from which to choose in the shops. This will occur due to the huge economies of scale of the North American marketplace and via the competition inherent within the EU marketplace, and from goods and services sourced from other continents.
- UK universities full and expanding due to higher enrolment from new free trade partner countries. And increased employment opportunities for British educators at UK universities is just one more benefit of Brexit.
- UK tourism operators will experience record year-on-year numbers as citizens from new trading partners become interested in the UK. For one example, if your Commonwealth son or daughter is working or studying in the UK, chances are you’ll end up in the UK at the holidays for a visit. And that’s good for UK tourism.
- UK hospitals will earn billions as patients from new trade partner countries travel to the UK for treatment. NHS expertise is highly respected around the world and Medical Doctors in other nations that have free trade agreements with the UK may have the option to send their patients to the UK for treatment. Billions that could be earned by the NHS are presently missed because no one is looking at this great cash-cow which could re-energize NHS budgets to a very high degree.
- The UK could dedicate its foreign aid spending to Commonwealth of Nations countries exclusively and keep the money in the family so to speak. The problem with foreign aid spending (as noble as it is for rich countries to help developing nations) is that once it’s spent, the UK will never see any benefit in return from such spending as the number of people who know which foreign aid donor funded this or that project in their nation is very small. Sometimes only a handful of people are in the know. But if the UK decided to spend their entire foreign aid budget in Commonwealth nations exclusively, the UK would become known as a major financier in their projects (projects that create much-needed jobs for citizens in developing nations) and the UK would gain recognition as a force for good in that country. PR like that you can’t buy from a public relations firm! It’s called, ‘Brand Loyalty’. Thenceforth expect UK companies to export more goods to each of those countries as disposable income rises among their population.
- Abolishing the Common Agricultural Policy (CAP) “The CAP costs British taxpayers twice over – once through subsidies paid to farmers and twice by keeping food prices artificially high. OECD data suggests EU farm prices are around 5% above world prices and our estimates based on this data suggest UK consumers pay around £2billion per year in higher prices due to the CAP.” AND: Abolishing the Common Fisheries Policy (CFP) “The UK fishing industry could potentially double in size after Brexit, as the UK takes full control of a natural resource which currently is mostly harvested by EU boats. Estimates by Napier (2018) and others suggest a rise in catch of up to £700m-800m per year which with positive supply chain effects could see a total boost to output of around £3bn per year – already offsetting a third of the possible trade losses.” — BrexitCentral
How’s That For a Few Benefits of the UK’s pending Brexit from the EU?
There are more benefits, of course. But for now, let’s agree that 3-years of Brexit dithering has cost the UK economy plenty and has negatively impacted countries whose economies depend on a healthy UK economy, and that it’s time for UK politicians to get their act together and deliver what ‘The People’ voted for in the June 23, 2016 referendum.
Whether you think ‘The People’ are right or wrong is wholly irrelevant. What matters, is democracy. And either the UK is a democratic nation or it isn’t. You can’t have it both ways.
So, let’s decide right now to make a success of Brexit and just get on with it.
Image courtesy of LondonThamesPort.co.uk
I read several articles online, and then posted this comment to city-data.com: It seems likely that the French government will veto any extension past the October deadline.
So a hard Brexit will likely be a reality a bit later this year.
I too, have heard that the French President, Emmanuel Macron, intends to veto any further Article 50 extension.
And as you rightly sumrise (IMHO) this will be enough in and of itself to cause a so-called ‘Hard Brexit’.
I don’t think that any so-called Hard Brexit is a thing to fear. IMHO, all the damage to the UK economy that would ever come from “Brexit” has already occurred on account of the 3-years of Brexit dithering that’s caused massive economic uncertainty — resulting in a severe penalty to the UK economy.
Macron, strangely enough, might become the Brexiteer’s best friend. And that’s a fine thing.
But in reality, he isn’t “for” or “against” Brexit; He has a country to run and all this economic uncertainty is hitting his country harder than any other and he just needs Brexit completed so that he can get back to running his country and fixing his economy.
Thanks again for your great comments! JBS
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You may think that after 3-years of economic uncertainty that’s caused harm to the UK economy and to the other economies depending on a strong British economy “it will be refreshing to know that restoring the UK economy to the roaring lion it once was is on the horizon”. But we are afraid the British people shall come to face a more catastrophic age, both the island and the continent also having their customers to pay for lots more customs and paperwork plus loss of precious time.
You realize of course that any additional tariffs and fees are strictly hypothetical at this point — as all of them are able to be changed, negotiated, deleted, or improved, by politicians on both sides of the English Channel at any time.
It means politicians might have to do some actual work to resolve these issues.
It also means that at the very worst, both the UK and the EU will revert to the WTO standard tariff schedule which will have the effect of making some things cheaper and other things more expensive.
Here’s a quote from BBC:
“Every WTO member has a list of tariffs (taxes on imports of goods) and quotas (limits on the number of goods) that they apply to other countries. These are known as their WTO schedules.
“The average EU tariff is pretty low (about 2.8% for non-agricultural products) – but, in some sectors, tariffs can be quite high.”
“Under WTO rules, after Brexit, cars would be taxed at 10% when they crossed the UK-EU border. And agricultural tariffs would be significantly higher, rising to an average of more than 35% for dairy products.”
So, compared to EU tariffs, non-agricultural goods will become cheaper.
But new cars coming from across the Channel would cost 2% more (because there is presently an EU-approved tariff schedule for cars crossing the Channel) so, why not buy a British-built car? That’s what Britons should be doing anyway.
In America, they have bumper stickers on their cars that say, “Hungry? Unemployed? Eat your foreign car!” Which neatly sums-up the situation.
As for dairy products, why would Britons ever think to buy dairy products from the continent when the UK produces some of the finest dairy products in the world (Devonshire Cream, etc) and with no expensive shipping cost added into the price?
All of it shows just how wonky the trade relationship is at this time, that Britons would choose to pay more for EU products instead of paying less for British products of equal quality. And probably fresher produce and dairy.
Tariffs are a sloppy, sloppy way to run an economy.
It means that politicians haven’t done their jobs properly; It means that trade negotiators haven’t done their jobs properly; It means that governments are raking in millions per month off the backs of consumers because they can’t be bothered to work out a ‘Win-Win’ trade agreement.
Such trade protectionism should be illegal to my mind.
It’s one of the reasons the WTO was created in the first place — so that every WTO-member country would have a standardized set of tariffs and fees, and no one country could install arbitrary, punitive, unfair, or onerous tariffs, fees, or other tricks to gain an advantage over others.
When countries trade on a level playing field — the best products, the goods with the best reputation, the items with the most competitive pricing tend to rise to the very top of the marketplace (Apple Computer, McLaren, Sony, etc) and the failures fall to the bottom.
That’s what capitalism is all about. That’s what free trade is all about. That’s what makes economies competitive and allows a country to flourish.
Hiding behind tariffs means that everyone is just coasting along, not trying at all to be excellent, and the governments rake in millions per month and use some of that revenue to subsidize loser companies that can’t be bothered to be competitive.
And that costs consumers.
The UK is already paying high tariffs for EU products, you just don’t see it nor hear about it. It’s already built into the price.
When those EU tariffs come off, they will be replaced by WTO tariffs which are mostly lower!
PwC did a study in late 2018 that said the average Briton would be better-off by 200 quid annually in the case of a WTO Brexit.
(Unless he or she bought a car manufactured in the EU, whereupon, he or she would pay 2% more (net) for the car)
For me, that’s fine. It serves as punishment for not being a loyal Brit who buys British manufactured cars.
And it serves to punish certain British carmakers for offering lacklustre cars.
It’s a small price to pay to put some honesty back into the marketplace, and to (hopefully) compel British companies to build better products and for Britons to spend their hard-earned cash like patriots.
Thank you for taking the time to comment at LetterToBritain.com and for setting out your concerns about Brexit.
Best regards, JBS
Here’s the link to the BBC.com article about WTO tariffs, etc.
Thank you very much for this thorough reply. We also should remember we all are better to buy products from nearby (= own country or region) to have a lower footprint.
Most countries do have enough qualified people also to produce high quality materials, be it electronica or cars.
We can only hope the best for the inhabitants and consumers.
(Hopefully all those who have worked some time in Gr. Br. shall be able to receive their English retirement fund also.)
It’s my pleasure to discuss these,and any other concerns about Brexit, and concerns about the UK in general.
I’m sure you’ll receive all your legal entitlements as regards your UK-based retirement fund, and if there are any problems receiving it, please do me the courtesy of informing me about it here at LetterToBritain, as I sometimes communicate with a number of senior UK officials (Not that they always agree with my thoughts on Brexit. Hehe) and I would feel privileged to be a tiny part of the solution to that problem, should it ever arise.
Letters to my Contact Page are considered confidential and are never published.
Enjoy the rest of the summer! JBS
Thank you very much. I keep that in mind (and do hope not to forget your proposition.)
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