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Thursday, October 21, 2021

Another trade deal, another flop

I woke this morning to the news that the UK have signed a trade deal with New Zealand. No doubt this will ne heralded as the best thing since sliced bread and a vindication of our leaving the EU. However, it will in no way compensate for the trade we have left since Brexit, and not everybody is impressed with the agreement.

The Guardian reports that the agreement is expected to add no value to the UK’s gross domestic product. They say that the deal may boost New Zealand’s GDP by $970m or around 0.3%, however, last year’s analysis by the UK government found that its effect on Britain’s GDP would probably have “limited effect … in the long run” – being between a positive growth of 0.01% or negative growth of -0.01%. And that is not all:

Minette Batters, the National Farmers Union president, said it would open the country’s doors to “significant extra volumes of imported food – whether or not produced to our own high standards – while securing almost nothing in return for UK farmers”.

She added: “We should all be worried that there could be a huge downside to these deals, especially for sectors such as dairy, red meat and horticulture. The government is now asking British farmers to go toe to toe with some of the most export-oriented farmers in the world, without the serious, long-term and properly funded investment in UK agriculture that can enable us to do so.

“It’s incredibly worrying that we’ve heard next to nothing from government about how it will work with farming to achieve this.”

Labour’s shadow international trade secretary, Emily Thornberry, echoed the criticism and said the deal would generate just £112m in additional exports for UK firms compared with pre-pandemic levels. Referring to the price tag of a new national flagship, she claimed the total value for businesses from the agreement would be “less than half the cost of Boris Johnson’s new yacht”.

Thornberry said: “It is a deal whose only major winners are the mega-corporations who run New Zealand’s meat and dairy farms, all at the expense of British farmers who are already struggling to compete. But for British jobs, growth and exports, this deal is yet another massive failure.”

It is no wonder our economy is struggling.
This govnt has no idea how to negotiate trade deals and being desperate for trade mega corporations full of negotiation experience can make mincemeat out of Johnsons govnt
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