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Exporting goods is fine if you have something others want to buy. UK has trade deficit with almost all trading partners and with all major economies. Why? Perhaps has nothing valuable to sell. Germany is in EU as is UK and Germany is biggest exporter, where is UK.
UK blames EU for their trade imbalance, but real problem is low productivity in UK, expensive goods which are difficult to sell, plus low quality. Service sector is 80% of economy, rest is basically reselling overpriced property to each other and rich mafia from around the world.
Really bright future waits UK.
I know that, it's no secret plenty of big tech companies in Europe are either registered in Ireland or Luxembourg.
If Germany/France want to be competitive and if the goal was benevolent they will simply play the same game and lower their taxes too to get more companies there or more investors.
But apparently it's easier to force the law upon other countries and collect 'the bill' later, rather than building something from scratch to attract money from foreigners, say like in Dubai.
You seem not to understand the real problem. France and Germany are also tax haven for these companies but in a different way. Just give you an example:
France is offering 130 billion euros each year to companies and get only 55 billion in corporate taxes. Then companies have subsidies in France to get all this grant (130 billion euros) and then to pay low corporate tax they register in the country where it is the lowest corporate tax. They are Trying to get all advantages from all countries.
We can reduce our corporate tax to 0% if needed by decreasing grants (especially for Research centers) but then they will implement research center'in another country and register in France.to pay 0% corporation tax.
Do you understand , without harmonisation no one wins?
The only winners are big American companies. And their shareholders. (Some billionaires who have bigger virtual wealth)
The problem the EU has with the UK, is it has a massive trade surplus, and as Professr Minford points out in the press today, if Britain takes down all barriers and we go for what is known as a hard brexit, then EU goods will be in direct competition with cheap goods and services from across the globe. This would hit many EU countries economies extremely hard, so a no deal situation is certainly not in the EU's own interest.
There are however a number of options, we could approach this as a so called hard brexit, or we could soften the negotiations and seek a Swiss or Norway, EFTA kind of approach. Britain was after all one of the founders of the European Free Trade Association (EFTA) back in 1960, long before we joined what is now the EU in the 1970's.
Lets also be quite clear that things are far from rosy between East and Western Europe, the EU has even threatened to remove Polands voting rights in relation to judicial independence and it's right not to take migrants, and Poland is backed by Hungary and many East European EU members.
The UK's Balance of Trade with EU Countries - 2015
No one forces you to buy whatever it is you are buying from EU countries. Perhaps their merchandise is better and cheaper than your home grown whatever it is you are trying to sell to UK residents.
You seem not to understand the real problem. France and Germany are also tax haven for these companies but in a different way. Just give you an example:
France is offering 130 billion euros each year to companies and get only 55 billion in corporate taxes. Then companies have subsidies in France to get all this grant (130 billion euros) and then to pay low corporate tax they register in the country where it is the lowest corporate tax. They are Trying to get all advantages from all countries.
We can reduce our corporate tax to 0% if needed by decreasing grants (especially for Research centers) but then they will implement research center'in another country and register in France.to pay 0% corporation tax.
Do you understand , without harmonisation no one wins?
The only winners are big American companies. And their shareholders. (Some billionaires who have bigger virtual wealth)
So what? Change your taxes, regulations, don't pay subsidies. Just stop whining and make some changes. You have been telling us for years that France is the greatest country in every aspect.
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"“If a thing loves, it is infinite.”"
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27,163 posts, read 13,449,232 times
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Quote:
Originally Posted by red baron
No one forces you to buy whatever it is you are buying from EU countries. Perhaps their merchandise is better and cheaper than your home grown whatever it is you are trying to sell to UK residents.
What the economist is trying to point out is that free trade with the rest of the world may be beneficial and that cheaper goods outside of the EU will make up ever more of what we buy, and the same will apply to exports.
Theresa May actually used the example of Scottish Whiskey, which currently has a 150% tax on it in India but this would be removed if we traded freely and there are numerous other examples.
We have options with regard to trading with the EU, we could even join EFTA if we wanted to, our trade deal with the EU is a seperate issue to trading more freely outside the EU.
What the economist is trying to point out is that free trade with the rest of the world may be beneficial and that cheaper goods outside of the EU will make up ever more of what we buy, and the same will apply to exports.
Theresa May actually used the example of Scottish Whiskey, which currently has a 150% tax on it in India but this would be removed if we traded freely and there are numerous other examples.
We have options with regard to trading with the EU, we could even join EFTA if we wanted to, our trade deal with the EU is a seperate issue to trading more freely outside the EU.
Status:
"“If a thing loves, it is infinite.”"
(set 1 day ago)
Location: Great Britain
27,163 posts, read 13,449,232 times
Reputation: 19459
Quote:
Originally Posted by red baron
Good luck!
We don't need luck, at the very least if we want we can join EFTA, and go back in to the customs union should we so wish, which is what the EU wants us to do. This would provide a Swiss and Norway type model, as for free movements a number of politicians have indicated that the EU is willing to be flexible, so if that's the case I don't see any real problem.
We don't need luck, at the very least if we want we can join EFTA, and go back in to the single market which is what the EU want us to do. This would provide a Swiss and Norway type model, as for free movements a number of politicians have indicated that the EU is willing to be flexible, so if that's the case I don't see any real problem.
It means going outside, to enter again, against the will of people that voted "out" (I target immigration specially).
Very smart move . No influence on EU anymore at any level, but almost entering again lol, against the will of a population that wanted to get rid of immigrants.
EU will never accept that UK refuses free movements of people, even in EFTA. You can totally forget this idea, it's one of the pillar of EU and EFTA too (which gives a passeport to EU).
And who said countries in the EFTA will accept UK? One veto and you are out (= Norway).
Status:
"“If a thing loves, it is infinite.”"
(set 1 day ago)
Location: Great Britain
27,163 posts, read 13,449,232 times
Reputation: 19459
Quote:
Originally Posted by Pokitobounto
It means going outside, to enter again, against the will of people that voted "out" (I target immigration specially).
Very smart move . No influence on EU anymore at any level, but almost entering again lol, against the will of a population that wanted to get rid of immigrants.
EU will never accept that UK refuses free movements of people, even in EFTA. You can totally forget this idea, it's one of the pillar of EU and EFTA too (which gives a passeport to EU).
And who said countries in the EFTA will accept UK? One veto and you are out (= Norway).
I am fine with just trading under WTO Rules to be honest, it's the EU that has the massive budget surplus and most of our financial trade relates to the US and Far East rather than Europe.
As for EFTA of course we could negotiate to join if we so wished, we helped found EFTA in 1960 and were an original member long before we joined the EU. The truth being that the EU wants us to join EFTA as the alternative would hit many countries in the EU countries very hard and damage balance of payments.
The real problems the EU is going to have to deal with run far deeper than Brexit, indeed the current EU problems relating to Poland and Eastern Europe show how fractured the EU has become and how Germany is becoming ever more unpopular from the Greeks in the South and right through Eastern Europe.
There is no consensus on how Europe should address the big questions it faces
Only 34 per cent of Europeans feel they have benefited from their country being in the EU
Brexit doesn't even make the top ten threats to the European Project
Last edited by Brave New World; 08-23-2017 at 05:12 AM..
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. No influence on EU anymore at any level, but almost entering again lol, against the will of a population that wanted to get rid of immigrants.
