UK Lectures EU on the “Whole Point” of Brexit
|Anyone who believes the EU has a big advantage in the pending trade talks with the UK needs to wake up to reality. The 'Whole Point' of Brexit is Undermined if UK Continues to Follow EU Rules, says David Frost, the UK's chief negotiator. The EU says it wants a "level playing field". That is an easily seen lie. The EU is still attempting to trap the UK into a customs arrangement. And it won't work. If the EU really wants a "level playing field" it will offer a Canada-style free trade agreement or better yet, agree to scrap all tariffs and be done with it. There is talk now of an "Australia Style Agreement". That is a euphemism for a basic WTO agreement. The EU has misjudged the UK's will every step of the way. That is why Brexit happened. It has another choice now. If the EU misjudges again, hello basic WTO agreement. But the WTO also allows for a basic agreement with details that can take as long as 10 years to settle. If an extended deal is accompanied by a long-term low-tariff arrangement, that's OK. The EU is staring into the abyss. There is no time for a"comprehensive" agreement but I still expect a blanket low-tariff agreement in which many details are left for later. Germany is in recession now. The Greens are not helping, nor diesel, nor is the coronavirus. Factor in huge exports tariffs if there is no deal at all, and Germany's already troubled export machine will collapse. The EU has no cards with which to bluff. Thus, I expect it will fold. If not, hello abyss.Brexit Means Brexit
David Frost Quotes
Level Playing Field
Australia Style Agreement
EU's Choice
Hello WTO?
EU Staring Into the Abyss
EU Has No Cards
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.