Daniel Hannan, through his launch of the Institute for Free Trade (HERE), is enthusiastically calling for us to become a sort of Singapore. A low tax, low regulation, tariff free trading area. He was accompanied by Boris Johnson and the launch was from a Foreign Office building in a calculated rejection of official policy. What Johnson was doing was obvious. He wants to be fired so he can challenge May for the leadership.
The government is going to have to rule the Singapore option out or give up the idea of any kind of trade deal with the EU. They will NEVER allow us to have a deep and special relationship while undermining the kind of social model that they see as essential to Europe's future. And many people believe Singapore became successful as a gateway to Asian markets. W cannot emulate it while cutting ourselves off from Europe. It will be a disaster. But if we keep close ties to the EU we won't be able to become a European Singapore. It is a Catch-22 situation.
BoJo is pushing for a short transition. He talks about our brilliant companies without seeming to realise it was our "brilliant" companies that lost entire industries and those that are success stories now are frequently run, staffed or started by immigrants. These brilliant companies did not want to leave the EU in the first place and are now pleading for a long transition. His response?
"...and let’s hope the date is soon upon us without too long a transition period – when they are finally unbound, unshackled,”
He is totally ignorant of the real needs of industry. Protesting they can't swim very well, Johnson is intending to throw them in the deep end and cross his fingers. This is not a policy. It is a reckless gamble of the kind no responsible government should ever contemplate.
Hannan told us during the referendum that "absolutely no one is talking about leaving the single market". Now, by launching the IFT, he must intend for us to leave the single market. He was in Kampala recently talking about trade opportunities and no doubt our farmers and manufacturers will be happy to know that they could soon be competing with workers on average wages of $1800 per year, or 10% of the world average (HERE).
The main advantage is that consumers, at least those still with a job, will pay less for goods in the shops and companies like Aston Martin and Burberry will be able to sell British goods to subsistence farmers and agricultural labourers in Mbarara.
Everyone, with the exception of those who don't want to take a 90% pay cut and have to unfortunately be made redundant plus farmers forced off the land by cheap imports, will be absolutely delighted.
I note there are now calls for an investigation into Johnson's use of Foreign Office facilities for political purposes (HERE). Fox is also included in the complaint.
I note there are now calls for an investigation into Johnson's use of Foreign Office facilities for political purposes (HERE). Fox is also included in the complaint.
