The Consequences of Brexit [part 4]

[ez8004]

As pointed out that imported trade is only about 25% so not much in trading terms.

 

Can you please make your mind up. On one hand you have advocated that the UK importing more from the EU will force them to give us a good trade deal which actually means you think that having a large trade deficit is a good thing. And here you’re saying that having a small trade deficit is actually better. Which is it?

 

Or do you actually have no idea?

[ENG601PM]

IF we make trade deals with other sugar producing nations dont you think they may put pressure on us...same as you reckon the EU do?

 

No. No. No. Too many people don't understand that self sufficiency, AKA protectionism, is a very very bad thing. That's one of the reasons, if not THE reason why the EU is failing as a trade bloc.

 

Countries specialise in different things and there is nothing wrong with importing the goods and services that they are good at, and exporting what we are good at. Baseline domestic production simply flattens price and supply spikes. Imports reduce prices and increase quality. That also applies to the UK's specialisations which reduce prices and increase quality in other nations. Nobody should imagine that the UK is a junior partner in ANY trade deal.

 

You wouldn't expect to be able to service your car on your drive as well as a specialist garage. You shouldn't expect your country to do everything itself too.

Edited January 22, 2018 by ENG601PM

[altus]

Which should improve,

 

"

UK sugar industry licks lips over end of EU quotas and price-fixing"

 

https://www.theguardian.com/business/2017/sep/29/uk-sugar-industry-licks-lips-over-end-of-eu-quotas-and-price-fixing

You do realise that article describes the situation inside the EU single market. If you want to see how being outside it after a hard brexit would affects things read this article.

 

True but home grown wheat accounts for around 80-85% of wheat used by UK flour millers and 75% of sugar is home grown.

If we don't produce enough, you can't complain about any company importing the stuff - somebody's going to have to. Unless of course you are going to argue for a cut in production, a ban on importing equivalent finished goods from elsewhere and for the public do without.

[retep]

You do realise that article describes the situation inside the EU single market. If you want to see how being outside it after a hard brexit would affects things read this article.

 

 

If we don't produce enough, you can't complain about any company importing the stuff - somebody's going to have to. Unless of course you are going to argue for a cut in production, a ban on importing equivalent finished goods from elsewhere and for the public do without.

 

You do realise your article is dated Mar 2017 (project fear?)

Mine is Sep 2017 (things are looking up)

[melthebell]

No. No. No. Too many people don't understand that self sufficiency, AKA protectionism, is a very very bad thing. That's one of the reasons, if not THE reason why the EU is failing as a trade bloc.

 

Countries specialise in different things and there is nothing wrong with importing the goods and services that they are good at, and exporting what we are good at. Baseline domestic production simply flattens price and supply spikes. Imports reduce prices and increase quality. That also applies to the UK's specialisations which reduce prices and increase quality in other nations. Nobody should imagine that the UK is a junior partner in ANY trade deal.

 

You wouldn't expect to be able to service your car on your drive as well as a specialist garage. You shouldn't expect your country to do everything itself too.

 

what i meant is, China and India are large producers of sugar (apparently) IF we want to do trade deals with those countries after brexit, they may want us NOT to impede their production and exporting of sugar, ie our production of sugar getting in the way of theirs.

Same with the US and what they produce.

[ENG601PM]

what i meant is, China and India are large producers of sugar (apparently) IF we want to do trade deals with those countries after brexit, they may want us NOT to impede their production and exporting of sugar, ie our production of sugar getting in the way of theirs.

Same with the US and what they produce.

 

Re read what I wrote.

[melthebell]

Re read what I wrote.

seems to me youre saying we bend over backwards after brexit and just take their exports

 

http://www.bbc.co.uk/news/business-41412717

yet OUR sugar producers want to increase, yet like i said that will impact on any trade deals with major producers

[Cyclone]

If we can't compete with the price of imported sugar, then despite "wanting" to expand our sugar production, it really makes no sense to do so does it.

It's a global market, we have expensive labour. So if it costs less to import then people will buy imported produce.

[ENG601PM]

seems to me youre saying we bend over backwards after brexit and just take their exports

 

http://www.bbc.co.uk/news/business-41412717

yet OUR sugar producers want to increase, yet like i said that will impact on any trade deals with major producers

 

No it doesn't say that at all. It says that countries are good at different things and national economies work best when they cherry pick the things from the best and most efficient / economic places. That includes the UK which has goods and services that other countries want and are more efficient to buy in than produce their own.

 

It also says that most nations have a baseline production. So if it is more efficient to ship sugarcane from Brazil, then ship it from Brazil. By all means have a marketplace for domestic sugar beet production too, but it is insane to think that the UK should produce all its own sugar beet and not import sugarcane. This principle applies to all goods and services.

 

Mr Trump says he wants to always buy American first. That's not going to happen and it would be an economic disaster if he tried. The USA is excellent at producing cheap wheat, so is Russia. We should buy it if it meets our market requirements. The USA isn't as good as the UK at finance, so they buy our services.

 

All I did there was a repeat the same thing using different and extra words. Does it make more sense now?

 

Do yourself a favour Mel and look up the definition of a DEAL.

Edited January 22, 2018 by ENG601PM

[melthebell]

No it doesn't say that at all. It says that countries are good at different things and national economies work best when they cherry pick the things from the best and most efficient / economic places. That includes the UK which has goods and services that other countries want and are more efficient to buy in than produce their own.

 

It also says that most nations have a baseline production. So if it is more efficient to ship sugarcane from Brazil, then ship it from Brazil. By all means have a marketplace for domestic sugar beet production too, but it is insane to think that the UK should produce all its own sugar beet and not import sugarcane. This principle applies to all goods and services.

 

Mr Trump says he wants to always buy American first. That's not going to happen and it would be an economic disaster if he tried. The USA is excellent at producing cheap wheat, so is Russia. We should buy it if it meets our market requirements. The USA isn't as good as the UK at finance, so they buy our services.

 

All I did there was a repeat the same thing using different and extra words. Does it make more sense now?

 

Do yourself a favour Mel and look up the definition of a DEAL.

so china and india are better at sugar production as they are bigger and have more clout, so we buy their sugar, and sod our own? thats a very defeatist attitude and wouldve been better for our own sugar producers under the EU surely?

 

going on your analogy, people working in sugar production probably wont or cant move into the financial sector so their would be job losses

 

bending over backwards still stands