Tweet
Originally posted by brightonr
View Post
What differing standards are you referring to? They are currently the same, are they not?
As for the motor trade or Airbus, we’re hardly going to be independently changing the spec of BMW components. Nothing actually needs to change unless the EU decide to put up barriers. In my opinion, the reality of that and the consequences for their member states will become clearer as the weeks pass. Not sure if the EU are stupid enough to create havoc among the economies of the “net contributors”, but if they are, it can only hasten it’s demise. Can’t see Germany and France being too keen on keeping the rest afloat even more than they are doing already.
I guess time will tell.
They won't be the same once we leave.
Once we leave the customs union and single market, we won't be bound the same EU law which gives effect to the same common rules, regulations and enforcement that apply to all the members. What matters isn't only what standards the goods adhere to but also what laws are present that give effect to the production of these goods and adherence to these standards. The effect that the law has is that it provides a means for these goods to travel without checks or hindrance (non tariff barriers). Having this law in place provides assurance to the trading partner as when there is a dispute they can invoke these laws and take the matter to adjudication. It's a means of trusting one another.
Once we come out of the EU jurisdiction they won't be able to do that and our goods automatically will not comply. In the case of no deal this will happen overnight without any time to put any infrastructure in place to comply with the new WTO requirements. The WTO itself will require us to check stuff as it will require the EU to check stuff, otherwise we'll be braking WTO rules.
What I meant by a free trade agreement not being a solution for Airbus and BMW was that it doesn't provide them with friction free movement of goods. They need their goods to move freely so that they can have just in time manufacturing so that their factories do not lose efficiency. If they do lose efficiency they will start doing some sums and if it's cheaper for them to move the factories than to keep them here, they won't care, they'll just move them somewhere else, whether that's Slovenia, Mexico or anywhere in the world really.
If we leave with no deal the EU will put up barriers (time will tell how far they'll go. Don't think flights wills stop although disruption is guaranteed.) Why would they put up barriers? Because that's the best thing for them to do, in a simple selfish I'll do whatever I have to do to protect myself kind of way. The same reason why so far they haven't budged much, they're not as worried about it as our government.
France and Germany won't be fed up of being net contributors (or the others). That's because they've done alright out of the single market. Think of the Greek debt scandal for example. They kept borrowing money cheaply and living beyond their means. They kept borrowing and buying all this stuff. A lot of it was German goods that they bought. Now they got all this debt and have to pay the Germans back. The Germans have done alright out of it. As have we.
Comment