truman Posted June 13, 2016 Share Posted June 13, 2016 There will be some knock-on effect. Businesses which trade with the EU, will naturally specify parts etc such that they meet EU standards. Just as businesses which trade with the USA specify for US standards. It's not a real problem. If we were in a position of doing 80% of our trade with the EU, like for example Norway, then it might make some sense. But for us it's less than half. 1st point 1st... you were only recently saying that EU regs would only affect those companies who trade with the EU..is that wrong now? What %age of Uk companies will be affected by EU regs? 2nd point 2nd... 45% of trade is a fair whack and any reduction in that would be a big hit for us.. Link to comment Share on other sites More sharing options...
MobileB Posted June 13, 2016 Share Posted June 13, 2016 There will be some knock-on effect. Businesses which trade with the EU, will naturally specify parts etc such that they meet EU standards. Just as businesses which trade with the USA specify for US standards. It's not a real problem. If we were in a position of doing 80% of our trade with the EU, like for example Norway, then it might make some sense. But for us it's less than half. There's not only the spare parts side of manufacturing. For the service industries, they also have to show, for instance, that their back office contracts are compliant (corporate governance and all that). It is much more than the 7% that trade directly. Link to comment Share on other sites More sharing options...
unbeliever Posted June 13, 2016 Share Posted June 13, 2016 Since my company is an import/export business, it is apparent that some people here are getting rather unnecessarily concerned about trade deals and tariffs. Our customers and suppliers, whether in or out of the EU, would be quite amused to hear such doom-mongering. The consensus from them is that trade will just carry on regardless. It's not Governments that oil trade, it's us. Our Group Procurement Director has just returned from Turkey, and our suppliers there are optimistic about trade if we exit the EU. Other customers/suppliers might be slightly more/less optimistic, as may other business sectors, but this doom-mongering is laughable. As I keep saying, such talk is just noise ... with the volume notched up to 11 to keep us from noticing what's really important. That the EU has become anti-democratic, anti-market, anti-innovation, pro-statism, pro-corporatism and pro-bureaucracy. Thought as much. Is your business likely to be affected by small tariffs which are a possibility for EU trade in the event of Brexit? Link to comment Share on other sites More sharing options...
MobileB Posted June 13, 2016 Share Posted June 13, 2016 Since my company is an import/export business, it is apparent that some people here are getting rather unnecessarily concerned about trade deals and tariffs. Our customers and suppliers, whether in or out of the EU, would be quite amused to hear such doom-mongering. The consensus from them is that trade will just carry on regardless. It's not Governments that oil trade, it's us. Our Group Procurement Director has just returned from Turkey, and our suppliers there are optimistic about trade if we exit the EU. Other customers/suppliers might be slightly more/less optimistic, as may other business sectors, but this doom-mongering is laughable. As I keep saying, such talk is just noise ... with the volume notched up to 11 to keep us from noticing what's really important. That the EU has become anti-democratic, anti-market, anti-innovation, pro-statism, pro-corporatism and pro-bureaucracy. Oh no. The Turks are joining the EU argument is starting again Link to comment Share on other sites More sharing options...
unbeliever Posted June 13, 2016 Share Posted June 13, 2016 (edited) Oh no. The Turks are joining the EU argument is starting again How about hearing him out on how trade will actually be affected by Brexit. ---------- Post added 13-06-2016 at 14:30 ---------- 1st point 1st... you were only recently saying that EU regs would only affect those companies who trade with the EU..is that wrong now? What %age of Uk companies will be affected by EU regs? Don't know. Only the 6-7% which trade with the EU will be directly affected. Others may be asked to produce items to EU standards. That's not the same thing. 2nd point 2nd... 45% of trade is a fair whack and any reduction in that would be a big hit for us.. There's no indication that we're going to lose a significant fraction of that 45%. Edited June 13, 2016 by unbeliever Link to comment Share on other sites More sharing options...
milquetoast1 Posted June 13, 2016 Share Posted June 13, 2016 (edited) Thought as much. Is your business likely to be affected by small tariffs which are a possibility for EU trade in the event of Brexit? Short answer. I don't know ... but I'm not worried. Longer answer. Our company is a microcosm of the entire UK trade of physical products (so Loob can sell a totally different story). Our ratios of imports/exports of these products to and from the EU and non-EU is very similar to the UK as a whole. 1/3rd of our exports are within the EU, with 1/3rd and increasing to eastern Europe (future EU?) and 1/3rd to rest of world. We import more from the EU than we sell, but this has been falling for many years as we switch suppliers to Turkey and Asia. This is because of the stagnation of EU suppliers, as the quality and price of non-EU product improves. Things change, whether in or out of the EU, and we adapt or die. There are risks whether in or out of the EU. I think the risks are higher in the short-term if we leave, but the risks are higher in the long-term if we stay. What if the EU was to go all kamikazie and apply the same tariffs to the UK as the ROW, and this was reciprocated? In our case that would be 4% on 1/3rd of 40% of our sales, and 10% (and falling) of our purchases. So probably very little effect really. It would make things a little bit more expensive for our EU customers, but not enough for them to shop elsewhere, and it would speed up our process of resourcing supply to Turkey/China. Our MD would be lobbying to get the EU stipulated tariffs that our ROW customers have to pay reduced. Our Turkish suppliers are already talking about trade possibilities that could open up if we exit the EU. So overall slightly less trade within the EU, and slightly more outside, adding up to diddly squat in the short term ... but I don't know. Which was my short answer Conclusion Or MD is pooing his pants, but myself and the other directors are not concerned. The people that actually talk to customers and suppliers are not concerned. Our customers are not concerned, our suppliers are not concerned (the non EU ones at least). Some politicians are very concerned. Edited June 13, 2016 by milquetoast1 Link to comment Share on other sites More sharing options...
Penistone999 Posted June 13, 2016 Share Posted June 13, 2016 Please don't argue these people were the clued-up soul of the nation. They were badly misinformed on nearly everything. Just shouty, angry, dismissive and rude. And led by a Tory Mp who had no idea what she was talking about either. Young people need to get out and vote. If the young support Brexit fair enough but please let's not let these angry middle-aged and pensionable aged white men decide our future. Us older generations have lived through the EU years and see what a farce it is. Dont forget we , including myself did NOT vote for a European union back in the 70`s . we voted for a common market . The young , still wet behind the ears , first time voters havnt got a clue about the damage the EU has caused over the years , us older ones do. Its time to get out of this farce. Link to comment Share on other sites More sharing options...
unbeliever Posted June 13, 2016 Share Posted June 13, 2016 Short answer. I don't know ... but I'm not worried. Longer answer. Our company is a microcosm of the entire UK trade of physical products (so Loob can sell a totally different story). Our ratios of imports/exports of these products to and from the EU and non-EU is very similar to the UK as a whole. 1/3rd of our exports are within the EU, with 1/3rd and increasing to eastern Europe (future EU?) and 1/3rd to rest of world. We import more from the EU than we sell, but this has been falling for many years as we switch suppliers to Turkey and Asia. This is because of the stagnation of EU suppliers, as the quality and price of non-EU product improves. Things changes, whether in or out of the EU. There are risks whether in or out of the EU. I think the risks are higher in the short-term if we leave, but the risks are higher in the long-term if we stay. What if the EU was to go all kamikazie and apply the same tariffs to the UK as the ROW, and this was reciprocated? In our case that would be 4% on 1/3rd of 40% of our sales, and 10% (and falling) of our purchases. Probably very little difference. It would make things a little bit more expensive for our EU customers, but not enough for them to shop elsewhere, and it would speed up our process of resourcing supply to Turkey/China. Our MD would be lobbying to get the EU stipulated tariffs that our ROW customers have to pay reduced. Our Turkish suppliers are already talking about trade possibilities that could open up if we exit the EU. So overall slightly less trade within the EU, and slightly more outside, adding up to diddly squat in the short term ... but I don't know. Which was my short answer Conclusion Or MD is pooing his pants, but myself and the other directors are not concerned. The people that actually talk to customers and suppliers are not concerned. That's very interesting. Thank you. ---------- Post added 13-06-2016 at 15:05 ---------- Us older generations have lived through the EU years and see what a farce it is. Dont forget we , including myself did NOT vote for a European union back in the 70`s . we voted for a common market . The young , still wet behind the ears , first time voters havnt got a clue about the damage the EU has caused over the years , us older ones do. Its time to get out of this farce. Then perhaps you remember, as I (being a little younger) have been learning by reading up on the history, the arguments surrounding EEC entry and later the ERM. I'm particularly interested in any recollections you may have of warnings of dire economic consequences if we dared withdraw from, or fail to comply with, additional European integration. And of course the dissenting voices of those times who ultimately proved correct. Link to comment Share on other sites More sharing options...
Shef1985 Posted June 13, 2016 Share Posted June 13, 2016 Thought as much. Is your business likely to be affected by small tariffs which are a possibility for EU trade in the event of Brexit? What was it Bastiat said about tariffs? They are inherently counterproductive... ---------- Post added 13-06-2016 at 15:07 ---------- Us older generations have lived through the EU years and see what a farce it is. Dont forget we , including myself did NOT vote for a European union back in the 70`s . we voted for a common market . The young , still wet behind the ears , first time voters havnt got a clue about the damage the EU has caused over the years , us older ones do. Its time to get out of this farce. Nothing like being called wet behind the ears by someone that never ever backs up anything he says with examples... Link to comment Share on other sites More sharing options...
truman Posted June 13, 2016 Share Posted June 13, 2016 Us older generations have lived through the EU years and see what a farce it is. Dont forget we , including myself did NOT vote for a European union back in the 70`s . we voted for a common market . The young , still wet behind the ears , first time voters havnt got a clue about the damage the EU has caused over the years , us older ones do. Its time to get out of this farce. Maybe you should have read the small print...from the government leaflet of the day "The aims of the Common Market are: To bring together the peoples of Europe. To raise living standards and improve working conditions. To promote growth and boost world trade. To help the poorest regions of Europe and the rest of the world. To help maintain peace and freedom." Link to comment Share on other sites More sharing options...
Recommended Posts