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Never mind predictions. How good is the EU for the UK Economy NOW? Watch

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    (Original post by DBR247)
    Does anyone think it will be easy for Trade Deals to be negotiated by the Brexiters? Not sure myself.
    EFTA has already invited the UK to join and has a large array of ready made trade deals. I think the UK should join EFTA, but not the EEA, and delay any Free Trade Agreement with the EU until the terrible balance of payments with the EU has been tackled.

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    the UK has massive levels of immigration from the EU but Ireland does not have such a high level.
    The UK has a much lower unemployment rate than Ireland.

    Therefore one can suggest that massive immigration is helping our citizens find work (even if its just looking after immigrants).
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    (Original post by newpersonage)
    As explained in my last post, EU investment simply turns a patch of the UK into a patch of the investing country's territory. Almost all of the benefit goes to the investing country. Foreign investment is only a real benefit if it leads to re-investment of profits in UK industry, taxes paid to the UK government and quality employment at decent wages for UK citizens. EU investment in the UK fails on all counts and is just exploiting what are currently favourable economic conditions in the UK compared with the Eurozone to enrich the Eurozone.
    Er... and also employment opportunities for UK nationals and more business for existing companies in the UK. Foreign investment will create both of those things.
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    (Original post by ByEeek)
    I don't buy this argument. Just because it is declining does not mean it should be discounted. It is 43% of exports and most of that is in services as opposed to manufactured goods. Certainly not something to be sniffed at. You name a business that would sack of half is sales on the basis of some ideological point.
    You seem to be one of these people who has bought the whole "if we leave the EU suddenly trade will grind to a halt!"
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    (Original post by newpersonage)
    EFTA has already invited the UK to join and has a large array of ready made trade deals. I think the UK should join EFTA, but not the EEA, and delay any Free Trade Agreement with the EU until the terrible balance of payments with the EU has been tackled.

    technically Canada should be green
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    (Original post by DBR247)
    Does anyone think it will be easy for Trade Deals to be negotiated by the Brexiters? Not sure myself.
    Much easier than by the EU given that apparently we will have no influence at all if we leave, what does that say about the influence of places like Singapore, Chile, and Switzerland. If they with less influence than us can get so many more deals than the EU then does that not suggest that we could do very well? IIRC the GDP of the nations Switzerland has trade deals with is 5 times that of the EU's deals, Singapore: 7 times, Chile: 10 times.

    There are two simple reasons for this: we won't lose as much influence as the remainers suggest such that we can do nothing in the world, and that the EU is fundamentally bad at getting trade deals, hardly surprising given who they have to cater for; it took many many years for the EU to negotiate a deal with Singapore, oddly enough everybody else with a FTA with Singapore managed it in a fraction of the time.
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    (Original post by ZeroFree)
    Er... and also employment opportunities for UK nationals and more business for existing companies in the UK. Foreign investment will create both of those things.
    I dont think you read the OP. The whole point is that EU investment in the UK does not have these beneficial effects. The UK has low unemployment so even if UK nationals are employed as a result of a given investment this creates a demand for a member of staff in another company who, as likely as not, comes from the EU.

    The EU companies that invest here are clearly using plant and stock from their normal EU sources because we are getting a large trade deficit with the EU that is financed by the EU "investment" (Hust look at the shelves of LIDL and ALDI and contemplate EDF power station management).

    Foreign investment works best when there is unemployment in the recipient country, a limit to migration and there is the possibility of restraining the movement of profits so that money is further invested in host country industries and tax is paid. The terms of the EU Treaties mean that capital and people can move as freely around the EU as in the UK. There is low unemployment in the UK, EU migrants can enter freely, profits are returned to the Eurozone, corporation tax is not paid and any re-investment creates more of the same problem rather than higher wages and profits for UK citizens.

    The easiest way to conceptualise what is happening is to regard, say, French investment in the UK as like French investment in Calais but with the UK trading and fiscal environments - the investment benefits France, not the UK.
 
 
 
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