Saturday, September 12, 2020
Trade deal with Japan scant consolation for EU disaster
In today's Guardian, the government is seeking consolation for its disastrous Brexit deal and trade policy through a trade deal with Japan, that will increase UK GDP by 0.07% – or £1.5bn – after 15 years.
As the paper points out, the Office for National Statistics records Japan as the UK’s 13th-most important goods export market, accounting for about 1.9% of all products sold overseas last year. Including trade in services, imports and exports were worth a total of £31.6bn last year, with 9,500 UK-based firms exporting goods there.
Given that Britain’s annual output is about £2tn, that represents less than 0.1% of gross domestic product. What’s more, it will take time for the benefits to show up.
In contrast, Boris Johnson's obsession with 'taking control' (otherwise known as enriching all the hedge fund operators, some of whom bankrolled Johnson's leadership campaign, who have bet £8 billion on a no deal Brexit) could leave us adrift from our biggest market, with a huge hit on our economy.
As the paper points out, the Office for National Statistics records Japan as the UK’s 13th-most important goods export market, accounting for about 1.9% of all products sold overseas last year. Including trade in services, imports and exports were worth a total of £31.6bn last year, with 9,500 UK-based firms exporting goods there.
Given that Britain’s annual output is about £2tn, that represents less than 0.1% of gross domestic product. What’s more, it will take time for the benefits to show up.
In contrast, Boris Johnson's obsession with 'taking control' (otherwise known as enriching all the hedge fund operators, some of whom bankrolled Johnson's leadership campaign, who have bet £8 billion on a no deal Brexit) could leave us adrift from our biggest market, with a huge hit on our economy.
And who could blame the EU (and every other trading country) for refusing to deal with us after the huge breach of trust in ditching part of the Withdrawal Agreement and undermining the Good Friday Agreement?
The EU, taken as a whole is the UK’s largest trading partner. In 2019, UK exports to the EU were £300 billion (43% of all UK exports). UK imports from the EU were £372 billion (51% of all UK imports). Quite a contrast with what we have signed up for with Japan.
The EU, taken as a whole is the UK’s largest trading partner. In 2019, UK exports to the EU were £300 billion (43% of all UK exports). UK imports from the EU were £372 billion (51% of all UK imports). Quite a contrast with what we have signed up for with Japan.
