As I watched Sky News yesterday one headline popped up and stated that the FTSE and the pound had fallen drastically with the news of the new Covid-19 strain and with France and the EU halting all passenger and freight traffic due to the new strain. The report then went to Ian King, Sky’s Business editor. He gave a good explanation of the fall and the reasons behind it whilst pointing out that the fall was much bigger in the EU nations.
He went on to explain the fall in the UK was made worse as many FTSE 100 corporations trade in the Euro and US Dollar and so therefore the drop in the UK was an effect of the bigger drop on the continent.
I then went upstairs where my Wife had the BBC (Boris’s Broadcasting Corporation) news on with the same story but put in a “we are doomed” tone and importantly no explanation like that of Ian King over on Sky.
We are rapidly approaching the 31st and in nine days we will have left, deal or no deal. Many of those who supported remain are now using the excuse of Covid-19 and the new strain to call for an extension to the transition period. In the words of Margaret Thatcher “No, No, No.”
There are lots of reports and impact assessments and statements from lots of organisations and bodies still full of doom.
An interesting point that has been argued is that UK exports to the EU are declining and will continue to do so. *
*source Full Fact article dated 28 August 2018.
Some of these exports are in fact destined for other countries outside the EU but have to transit through EU ports such as Rotterdam and are added to UK export figures to the EU. This is known as the Rotterdam Effect.
Extract from the Full Fact article :
EUROPE / TRADE
“Everything you might want to know about the UK’s trade with the EU
28 AUGUST 2018
Trade with the EU matters a lot, but slightly less than it used to
About 44% of UK exports in goods and services went to other countries in the EU in 2017—£274 billion out of £616 billion total exports.
That share has generally been declining, since exports to other countries have increased at a faster rate.
The EU’s share of the world economy has been declining too. In particular, the developing world has been growing faster than the developed world and is expected to continue doing so.
53% of our imports into the UK came from other countries in the EU in 2017.
It’s sometimes argued that these statistics overstate the proportion of UK exports that go to the EU, because a lot of goods pass through ports like Rotterdam before being shipped to a final destination outside the EU.
Both the Office for National Statistics and the government’s review of our EU membership have concluded that it’s hard to quantify the extent of this ‘Rotterdam effect’ or establish whether it’s a serious problem for the statistics.
The ONS has estimated that it may account for around 2% of all exported goods and services to the EU.”
We must also remember that in trade if one seller, such as the EU puts up barriers with the UK then another nation will fill the gap in the market. This is what free market competition is all about. The freedom to trade with others without the protectionism as seen in the EU in the guise of equality.
As Lord Acton said and I quote :
“The finest opportunity ever given to the world was thrown away because the passion for equality made vain the hope for freedom.”
So to summarise, we must not use the excuse of the pandemic to extend the transition period in the falsehood that we will gain a better deal. We must move away from the socialist protectionism of the EU and embrace free market economics and champion competition.
We must squash the indoctrination and policies that this Conservative blue socialist Government is passing off as safety and protection from Covid-19.
The ones who are ruining the economy are the present politicians and lawmakers.
Glenville Gogerly EADW – Libertarian Party Interim Chairman