The Lib Dems tell us Trump tariffs will damage the world economy and harm our trade. They then tell us to join the EU Customs Union to put a whole load of tariffs on trade coming from outside the EU. They say this would supercharge our growth. This stupid contradiction skewers their argument and reminds us how absurd the idea is that joining the Customs Union would make us richer.
We did try all this over a period of 48 years.During the first 20 years in the EEC our average annual growth rate slowed compared to the 20 years prior to entry. For the two decades after 1992 when we were in the “ completed” single market as well as the Custom Union, our annual growth rate slowed even further. There is no sign in any of the numbers of any boost to growth or living standards from joining.Indeed, in the run up to 1992 the EU policy of belonging to their Exchange Rate Mechanism gave us first a rapid inflation to be followed by a deep recession.
The UK is benefitting from Brexit by the removal of all tariffs on imports of things we cannot make or grow for ourselves, and from materials and components needed to add value through our manufacture. Why re impose all these tariffs driving up prices for UK consumers and making manufacturing even more uncompetitive.?
This government has completed the negotiations on the India Free Trade Agreement and inherited the Trans Pacific Partnership Agreement. We would have to tear these up if we joined the EU Custom Union. Why antagonise so many countries in the fastest growing part of the world?
The UK has negotiated a less penal tariff settlement with the USA than the EU. Why throw that away?
The Lib Dems rely on the National Bureau of Economic Research study which says the UK has lost 6-8% of potential GDP. If they had read it they would see the last thing to do to speed our growth rate would be to join the EU. The loss of potential comes from comparing us to the US and other faster growing economies. The study leaves out slower growing Germany, France and other EU countries as they are embarrassingly worse than sluggish UK. We needed to leave the EU to try to narrow the gap with the US growth rate. EU taxes and regulations have put the EU into a dreadful slow lane compared to the US.
Imposing a whole load of tariffs and paying the EU a shed load of money did not boost our growth when in the EU. It would be an unaffordable folly to try to do it again.