Friday 26 July 2019

Trade blocking beats

Trade.

Brexit.

If all Brexit was going to affect was trade, then that would be bad enough, but it will leak into almost every area of life.

But back to trade.

And a few posts back I suggested that complaining about bending to EU rules being bad but standing up for the right for the same rules being dictated, literally, to by the US is somehow good, needs some explaining.

As a member state of the EU, the UK takes part in negotiations, sets to terms of reference (Brexit excepted) and has the right of veto for much of what the EU does. And a trading black of 28 countries has a very strong collective voice on the world stage of global trade, you only have to see how the EU sided with the UK when the US imposed punitive tariffs on product from a NI supplier. The collective voice and strength meant the US backed down.

As the 51st state, the UK would have to do what it was told, agree to diktats, otherwise be frozen out of be subject to punitive measures with no one to back us.

It all seems very risky to me.

But what do I know?

Well, signing off on a US-UK trade deal is not a gift the President can make alone. It needs ratifying by Congress. And Congress has underwritten the Good Friday Agreement (GFA), and several Senators have warned the UK, Naci Pelosi yesterday being the latest, that any Brexit that harmed the island of Ireland or undermined the GFA would mean any trade deal with the US would not be ratified. This could set up another Congress v Trump battle, but with chaos in NI likely to be under way, would be difficult to see an easy resolution.

And the word "trade deal" is the trouble too. I could agree a trade deal with the US tomorrow, doesn't mean it would be a good one. And that is the problem, dealing with a protectionist US President, who at best is unstable, and a very long track record of lying and breaking deals.

Why on earth would any country want to do this, unless there was something huge in it for them.....

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