IEA: Brexit Britain Should Commit to Unilateral Free Trade

Guido hears today’s new Institute of Economics Affairs report on trade policy has been well-received by ministers. It argues that no deal with the EU on trade would not be a disaster for the UK, recommending Britain commits to a policy of unilateral free trade with the rest of the world, eliminating all barriers to imports regardless of whether other countries impose tariffs on their imports from the UK. It would then be up to the EU if it wanted to impose tariffs, which would hurt EU consumers by raising prices. In such a scenario, the IEA report concludes the UK would likely be given tariff free access to the single market:

“There are many myths being perpetuated about trade policy – and more specifically about the UK’s relationship with the EU – that must be debunked. Many people believe that disaster will befall us if we do not forge a deal with the EU. In fact, we could unilaterally eliminate all import tariffs, which would give us most of the benefits of trade, and export to the EU under the umbrella of the WTO rules. Then we can seek free trade deals with all major trading partners, including the EU.”

If a bad deal is offered by the EU, the UK should say thanks but no thanks, walk away and unilaterally set tariffs at zero…




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Quote of the Day

Dominic Raab wrote in his letter of resignation…

“This is, at its heart, a matter of public trust,” he told the PM, concluding: “I cannot reconcile the terms of the proposed deal with the promises we made to the country in our manifesto at the last election… I believe that the regulatory regime proposed for Northern Ireland presents a very real threat to the integrity of the United Kingdom. I cannot support an indefinite backstop arrangement, where the EU holds a veto over our ability to exit…”

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