Tel. +44 (0)20 7287 4414
Email. info@brugesgroup.com
Tel. +44 (0)20 7287 4414
Email. info@brugesgroup.com
The Bruges Group spearheaded the intellectual battle to win a vote to leave the European Union and, above all, against the emergence of a centralised EU state.
The Bruges Group spearheaded the intellectual battle to win a vote to leave the European Union and, above all, against the emergence of a centralised EU state.
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Sovereignty is the issue

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The issue at the heart of our contentious relationship with the European Union – and before that the Common Market – was sovereignty, rather than trade.

Likewise, the debate over the Withdrawal Agreement: it has little to do with our trading relationship and everything to do with ensuring that sovereignty remains firmly with the EU, although technically Britain will have left.

It seems obvious that if they wish their party to remain a credible party of government, Conservative MPs must offer their support to a leadership candidate who recognises this reality, who is determined to reject the Withdrawal Agreement and who will commit himself to ensuring that the United Kingdom becomes a sovereign state once again.

Barry Legg
Chairman, Bruges Group
London SW1

 This letter appeared in The Daily Telegraph on Tuesday 4th June 2019

There is no Such Thing as No Deal
Labour Shortages
 

Comments 1

John Poynton on Thursday, 20 June 2019 16:00

Even so it is affecting the decision so we must address it.

The real point is that there is in fact no conflict between the two. Tragically none of the Conservative leadership candidates, nor Nigel Farage, has any plan to prevent disruption to our exports in the event of a No Deal Brexit. This could easily be avoided by using our new import tariff revenues to refund to foreign importers the tariffs they will (and are in the rest of the world) have to pay on our exports, thereby effectively creating unilateral free trade for our exports. Article 2 of the WTO’s Agreement on Subsidies and Countervailing Measures clearly defines a prohibited subsidy as a payment to a specific entity within the jurisdiction of the granting authority. Thus payments outside our jurisdiction to foreign importers would not be prohibited and be entirely legal, also producing a positive cash flow for the Treasury because we have a deficit. Even if the EU were granted countervailing measures that would not work for them because it would only create a negative cash flow.

Historically the highest rates of economic growth have been achieved by economies running a strong balance of payments surplus. Britain must become a surplus economy if we are to escape QE and the productivity gap. That can only happen if we take back control of our trade thereby attaining the benefits both of import substitution from the import tariffs and export expansion from the foreign tariff refunds within a No Deal Brexit. Any attempt to do a deal with the EU either before or after Brexit would simply lock us into the catastrophic downward current account spiral we have experienced within the Single Market and Customs Union over the past twenty years.

Even so it is affecting the decision so we must address it. The real point is that there is in fact no conflict between the two. Tragically none of the Conservative leadership candidates, nor Nigel Farage, has any plan to prevent disruption to our exports in the event of a No Deal Brexit. This could easily be avoided by using our new import tariff revenues to refund to foreign importers the tariffs they will (and are in the rest of the world) have to pay on our exports, thereby effectively creating unilateral free trade for our exports. Article 2 of the WTO’s Agreement on Subsidies and Countervailing Measures clearly defines a prohibited subsidy as a payment to a specific entity within the jurisdiction of the granting authority. Thus payments outside our jurisdiction to foreign importers would not be prohibited and be entirely legal, also producing a positive cash flow for the Treasury because we have a deficit. Even if the EU were granted countervailing measures that would not work for them because it would only create a negative cash flow. Historically the highest rates of economic growth have been achieved by economies running a strong balance of payments surplus. Britain must become a surplus economy if we are to escape QE and the productivity gap. That can only happen if we take back control of our trade thereby attaining the benefits both of import substitution from the import tariffs and export expansion from the foreign tariff refunds within a No Deal Brexit. Any attempt to do a deal with the EU either before or after Brexit would simply lock us into the catastrophic downward current account spiral we have experienced within the Single Market and Customs Union over the past twenty years.
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