Tuesday 6 February 2018

REES-MOGG AND THE CUSTOMS UNION

There is an interview with Dominic Grieve in The Independent (HERE) which is about changing our mind and doing so before this autumn, otherwise it will be too late. But the interesting part is at the end and quotes the old part-time undertaker's mate from Somerset, Jacob Rees-Mogg who exists in a totally different world to the rest of us. He says we must get out of the customs union,


He apparently told BBC’s Today programme the other day: “We need to be free to do deals with the rest of the world. We must be out of the protectionist common external tariff which mainly protects inefficient EU industries at the cost to British consumers.”


He thinks EU industries are inefficient. Think about it. If this was remotely the case we should be having a field day exporting our cheaper, more efficiently produced goods to the EU beating their inefficient industries hands down. Oddly, this isn't happening. We have a huge trade deficit in goods.

In fact, the truth is the opposite of what Rees-Mogg thinks. One of the reasons often given for Brexit is that our exports to the EU are falling. This is another way of saying we can't compete. He has probably never been inside a European factory. If he had he would realise they are light years ahead of us, not lagging behind. They are more productive and more efficient than we are in almost every way.

Of course we can import cheaper goods from elsewhere, especially foodstuffs but is it wise to become reliant on other countries for food?  The EU was set up partly to guarantee a reliable source of food at reasonable prices and produced to reasonable standards with good animal welfare and without damaging the environment.

Rees-Mogg has an eighteenth century outlook and wants to cut regulations as a way of giving us an advantage over Europe rather then becoming more efficient ourselves on a level playing field. Brexit from this angle is really an admission we cannot be competitive. How the UK is expected to compete with other cheaper, more nimble and efficient countries after Brexit he doesn't say. In fact his solution is no more than a quick-fix and it would be disastrous for many industries, especially farming. If he was really concerned about making the country better off he would start by emulating Germany inside the richest trading bloc in the world, instead of trying to get us out.