What do free trade agreements add?
There are so many misconceptions in current debate about the nature and value of a Free Trade Agreement.
The first is, you do not need a Free Trade Agreement in order to trade with other countries. The UK in the EU has no free trade agreement with either the USA or China, the two largest economies in the world, yet we have a large trade with both of them.
The second is trading as we do under World Trade rules there is no WTO requirement to impose tariffs on imports. We do so because the EU tells us to impose tariffs on food and cars, not because the WTO makes us. Once we leave we can decide whether to remove those tariffs or not. There is no requirement to impose tariffs on say drugs, and the UK government has made clear it would not do so.
The main reason we can have a successful trade with the USA and China and can have one with the EU after we leave is the existence of WTO rules. A country cannot impose higher tariffs against us than they impose on everyone else. Free Trade Agreements are allowed under WTO rules for countries wishing to go further than the relatively low advanced country tariffs reached under WTO rules so far. The facilitation of trade Agreement ensures smooth borders for the transit of goods between WTO members. All EU countries are members.
Free Trade Agreements can add a bit to trade by removing the remaining tariffs and a few other barriers that still exist under WTO rules. They are nice to have but not essential. It would not be worthwhile making big sacrifices to get one. They are gently mutually beneficial and for that reason countries do not pay to get them.
It is odd that Remain campaigners both claim a free trade agreement with the EU is essential to our continuing trade with them, but try to prevent any free trade agreement with the USA. It’s a typically contradictory position to adopt.
Source: http://johnredwoodsdiary.com/2019/11/07/what-do-free-trade-agreements-add/
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).