“One of the great opportunities of Brexit is our ability to trade more with countries around the world. I know that the right hon. Lady will want to speak to many of the Welsh farmers who are enjoying selling their lamb to the new markets that we have opened up for them. That is what we will get on and deliver” – Prime Minister Rishi Sunak (09.11.2022).
The new Prime Minister in the PMQs answered a question about international trading from Liz Saville Roberts MP. Who asked a serious question in concerns with the forecasts from the Office for Budget Responsibility, which states the trade will be lowered by 15%. In response to that, the PM answered this and went on about selling welsh lambs.
This isn’t a case of only mutton. No, this is a case of botched opportunities and losing the European Single Market. The realities of Brexit is setting in and as a Third Country, the losses are piling up. That’s why the export industries has been hit and other industries have even flagged out of the United Kingdom. Because, they are safer to be within the European Union and the Single Market… than risking their bets from the UK.
That’s why it’s interesting not only the mention of a bad forecasts from the OBR. There are other reports coming with shattering numbers, which the former Chancellor should be worried about.
Just read this:
“David Jinks, head of consumer research at logistics firm ParcelHero, commented: “Britain’s exporters of goods, from food to cars, have all suffered from the impact of the poorly negotiated Brexit trade agreement and increased red tape and duties. The same applies to services, from finance to computing, which now fall outside the regulated EU services market. “Perhaps most disappointingly, these latest results reveal Britain failed to successfully transition away from the EU to other overseas markets – one of the positive outcomes promised by Brexiteers. Looking at two vital export markets beyond the EU, the numbers also tumbled. “Perhaps the situation is summed up best by looking at the UK’s exports to the whole of the EU. In 2019, they stood at a healthy £298bn. By 2021, they had slumped by £30bn to £268bn, but even that was a huge lift from the £259bn they had tumbled to in 2020, in the immediate aftermath of Brexit.”” (Chris Sparks – ‘UK Exports Slump In The Aftermath Of Brexit’ 31.10.2022, Businessplus.ie).
A conclusion from one paper:
“Across EU member states, we find that Brexit has led to a significant decline in trade with the UK in almost all cases although by varying magnitudes. Looking at the different margins of trade, we find a substantial reduction in the number of products traded from the UK to the EU. However, for EU to UKtrade, three quarters of the estimated fall in trade can be attributed to the intensive margin. This is consistent with a pattern of smaller trade flows more impacted by changes in trade costs in the UK to EU direction and hence ceasing to trade” (Janez Kren & Martina Lawless – ‘How has Brexit changed EU-UK trade flows?’, October 2022, Economic & Social Research Institute (ESRI) – ESRI Working Paper No. 735).
When a man like David Jinks is stating this. We have already seen how the Seafood industry and Animal industry has reacted to the effects of Brexit. There has been businesses and such who has lost out a lot, because of it. Brexit has brought a lot of ramifications and no deal or the free trade agreement (FTA) has the ability to cover the losses of trading within the EU.
Brexit promised a fantasy land, which haven’t appeared. The dreams of leaving the EU and getting full sovereignty haven’t cut it for the businesses. The exporters has been hit and the logistical firms has also been devastated by it. This is the true costs of operating from the outside and also locking itself from the European continent by default.
The losses of the trade agreements which the UK had through the membership of EU hasn’t been replicated either. Neither is it getting the same sort of treatment or abilities to export to the EU. That’s the consequence of the Withdrawal Agreement and successive negotiations ever since. The UK has failed here and they are continuing the agony.
The Prime Minister can make lofty promises and say the Brexit will create a new day tomorrow. However, the realities are the same and the UK haven’t established or been able to generate deals, which are as beneficial as being part of the single market. That is just an issue that will linger on. Because, that’s what gave the UK a huge boost and simplistic trading partner with the EU Member States, which it doesn’t have today.
So, when Sunak says there is lots of opportunities, as a result of Brexit. I don’t see it and I only see a lie. All things are showing that the downturn and the affects of Brexit is a decline. The Brexit itself has only cost and it isn’t changing for the better. Peace.
MinBane 