James Dyson was on Radio 4 yesterday morning suggesting we will have to leave the EU without any trade deal and export under WTO terms, saying this is OK and it won't affect his company because they already pay WTO tariffs. This is because his manufacturing takes place in Malaysia. It is a great example of a successful "British" company adding to our trade "deficit" rather than helping to produce a surplus. One might say he has so much faith in Britain that he has moved his manufacturing operation out of it!
He said leaving without a deal would hurt the EU more than it hurt us (HERE) which is amazing.
The German Federal Ministry of Economics earlier this year commissioned a study "which showed that Brexit "will definitely be much more expensive for the UK than for Germany", although the precise costs will vary according to the nature of the final agreement. In the event of an EU-Korea style of agreement, the Institute calculates that real GDP in the UK will decrease by 0.6 percent, compared with 0.1 percent in Germany and 0.11 percent in the EU 27" (HERE).
In the worst-case scenario, losses in the United Kingdom would be 1.73 percent of GDP over the long term, Germany would lose 0.23 percent and the EU 27 would average a 0.26 percent loss. In four "hard" Brexit scenarios modelled, the UK's relative loss is at least five times the EU average. In the "soft" Brexit scenarios modelled, it is at least four times as high.
So much for it hurting them more. He is not alone in this thinking though, Asa Bennett in The Telegraph (HERE) says the EU is "starting to fear a no deal Brexit", as we look across the Channel at EU leaders either yawning (Merkel) or rubbing their hands with glee (Macron). When will these delusions end?
I assume Dyson is in the Patrick Minford camp and expects manufacturing to be eliminated in his country, no doubt based on his own experience in helping to achieve it. Dyson sets himself up as some great authority on manufacturing but he once tried to design and make a washing machine - it totally failed after spending a fortune. He is now trying to sell hair dryers for £300 which will also soon fail. We have two Dyson vacuum cleaners but won't be adding any more. I am boycotting him!
He is also said to be thinking about making an electric car - I assume this will be on the lines of the Sinclair C5 with about the same level of success.
