Good summary on what leaving the EU means even with a "free trade" deal: A lot more bureaucracy and red tape. A lot. What a lot of people don't understand is that tariffs are comparably negligible these days, the real problem is all the documentation, the rules and related areas which create friction. And friction in trade costs money. A lot of money. Not to mention it reduces competitiveness.
Let's say there's a widget maker in Germany. It needs a part for its widgets. Two suppliers in Europe can provide them, one in the UK, the other in France. Both offer very similar prices.
Our widget maker has a sudden spike in demand and urgently needs more parts. One phone call in France and two hours later the lorry with the parts arrives. The UK supplier however has its lorry stuck at the border, may be because there's a border agent strike or because there's a problem with the certificate of origin or because there's an issue with some other paperwork or because you have to register your shipment 24 hours in advance. Or the widget maker has a problem integrating the part into the widget. One phone call in France and an engineer arrives the next day to sort out the problem and as certifications within the EU are recognised signs off on it. The UK engineer in the meantime is applying for a work permit, which takes 48 hours to process. Once that is sorted he arrives 3 days later and fixes the problem. Except that it then turns out he doesn't have the necessary certifications, so the widget maker has bring in an additional engineer from Germany to sign off on the work the UK engineer has done.
Which supplier is the German widget maker more likely to pick, the French or the UK supplier?
reshare from @harry haller
Why Boris Johnson’s EU deal would actually mean a hard Brexit | The Independent a free trade agreement expressly does not mean that the UK retains all of the free frictionless access it currently enjoys.
#uk #eu #brexit