Originally Posted by
Andy_Faber
My mind might be addled by drinking too much cheap cider and inhaling too much barbecue smoke but to me some of the deals we can do are dead simple. Here's one with Poland, and these are real numbers apart from my percentages
'OK Mr Pole, lets do a deal. You can have free movement of goods and services with UK, but free movement of people is a no-no'
'Sorry Mr Brit but Mrs Merkel says we cannot do that'
'OK Mr Pole, what's the deal?'
'If you do not allow free movement of people, we will impose a tarriff of 20% on your goods and services'
'That's a deal, Mr Pole'
'What?'
'That's a deal. We send you £5.5bn of goods every year. That's mainly high-tech stuff, so lets assume we lose 20% of that business because of the tarriff, so our exports reduce by £1.1bn to £4.4bn. Ouch. BUT, you send us £9.5bn, and because there is less high-tech lets say you lose 30% of that business because of course we will impose a tarriff of our own. So your exports reduce by £2.9bn to £6.6bn. So that looks like a balance of payments win for us, thanks!'
'Hmmm, Mr Brit, you seem to have, as you say, Top Trumped me. Nevertheless, Mrs Merkel says we have to make you pay for removing free movement and, er, we have. Thank you and goodbye'
'Not so fast Mr Pole, I need to point out something you have missed'
'Please Mr Brit, enlighten me'
'You would notice if you came to Britain that may of your hardworking and industrious countrymen and women retain much of the motherland's customs, including many who consume a very high proportion of their food and drink sourced from Poland. Lets assume on average that proportion is 50%. So a 20% tarriff will mean your countrymen and women's cost of living in UK will increase by 10%. Thats down to you'.
'OK Mr Brit, we wont impose inward tarriifs on food and drink, and that means you wont have to'
'Sorry, Mr Pole, no deal, WE decide what to put tarriffs on, we'll stick with no free movement of people and a 20% tarriff thanks'
'Hmmm, I think I'd better go and see Mrs Merkel'
QED
Just for discussion chaps