Brexit & Customs Union

[WBA123]

Most people on here are prominent leavers,

So can I ask, those of you who are, for just one benefit it will have for the UK to leave the customs union?

I honestly can't think of a single good reason.

[9goals2hattricks3pen]

Most people on here are prominent leavers,

So can I ask, those of you who are, for just one benefit it will have for the UK to leave the customs union?
I honestly can't think of a single good reason.

The short answer is it puts up the price of bananas by 10.9%. For a longer answer see below.

Members of a customs union are obliged to negotiate collectively with non-members, or organisations like the WTO, as a single group (bloc) of countries. While this is essential to maintain the customs union, it means that members are not free to negotiate individual trade deals in their own national interest.

For example, if a member wishes to support a declining industry, or protect an infant industry, it cannot do so through imposing its own tariffs, or other discriminatory trade policies. Equally, if it wishes to liberalise its trade, and open up to complete free trade, it cannot do so if a common tariff exists.

Also, it makes little sense for a particular member to impose a tariff on the import of a good that is not produced at all within that country.

There is also a potential disadvantage to a single member in how the tariff revenue is allocated. Members who trade relatively more with countries outside the union, such as the UK, may not get their 'fair share' of tariff revenue.

Furthermore, the revenue retained by members who collect the initial revenue - between 20 and 25% in Europe - has been estimated to greatly exceed the atual collection costs of that revenue.

Can I ask from which bit of the EU do we get more than our fair share. I can't honestly think of a single one.

[WBA123]

The short answer is it puts up the price of bananas by 10.9%. For a longer answer see below.

Members of a customs union are obliged to negotiate collectively with non-members, or organisations like the WTO, as a single group (bloc) of countries. While this is essential to maintain the customs union, it means that members are not free to negotiate individual trade deals in their own national interest.

For example, if a member wishes to support a declining industry, or protect an infant industry, it cannot do so through imposing its own tariffs, or other discriminatory trade policies. Equally, if it wishes to liberalise its trade, and open up to complete free trade, it cannot do so if a common tariff exists.

Also, it makes little sense for a particular member to impose a tariff on the import of a good that is not produced at all within that country.

There is also a potential disadvantage to a single member in how the tariff revenue is allocated. Members who trade relatively more with countries outside the union, such as the UK, may not get their 'fair share' of tariff revenue.

Furthermore, the revenue retained by members who collect the initial revenue - between 20 and 25% in Europe - has been estimated to greatly exceed the atual collection costs of that revenue.

Can I ask from which bit of the EU do we get more than our fair share. I can't honestly think of a single one.

I have actually learned something, because I was of the understanding we could stay in a customs union and still negotiate our own trade deals, but that is not the case. So thank you.

In that case, we obviously have to leave the customs union because of Brexit. What we need then is a Free Trade Agreement with the EU. So that trade is not affected by customs red tape, they're still our largest trading partner by far.

[9goals2hattricks3pen]

Agreed and if this was about economics that is what would happen But it's more about politics and politics won't allow the EU to do the things best for all.