Letter: Leaving the EU Would Improve Britain’s Trade Position

Published on: 1 Mar, 2016
Updated on: 1 Mar, 2016

From Gordon Bridger

While there is a widespread belief that there have been benefits of our trade with the European Union, data provided by the Office for National Statics show that from 1995 to 2014 our deficit in goods and services has risen astonishingly from £11 billion a year to £62 billion, a more than a five fold increase.

If one takes goods alone (omitting services) the deficit is even greater at £77 billion.

While we have been running this adverse trade balance with the EU our exports to non-EU countries have been rising faster at 6.5 per cent compared with 3.5 per cent, and we have been running a trade surplus with them, mainly due to exports of services. Services have not been liberalized in the EU.

Since the economic justification for joining the EU in the first place, and agreeing to massive subsidies to farmers, was to increase our trade with Europe this disastrous failure seems to have gone unnoticed. Why?

It also undermines the argument the EU would discriminate against us if we leave. Why should they with this massive surplus wish to undermine their exports? In fact, it would suit Britain if a trade war started. Think of the benefit to our car industry if we imposed retaliatory tariffs on German cars.

There can be little doubt that no intelligent person in the EU would wish to upset their present all too favourable trade relations while negotiations were going on. Continuation of current arrangements would suit the EU.

Gordon Bridger is a hon. alderman and former Guildford mayor.

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