Brexit Encore

[Rhossydd]

Because of 40% tariffs.

Whereas the EU has limited tariffs on imported sheep meat from NZ.
https://britishmeatindustry.org/industry/imports-exports/sheepmeat/

So price of lamb from UK goes up 40% in the EU, other suppliers don't change.

Also add in extra costs of proving compliance with EU standards on import into the EU and dealing with import processes.

[Alan Klein]

Whereas the EU has limited tariffs on imported sheep meat from NZ.
https://britishmeatindustry.org/industry/imports-exports/sheepmeat/

So price of lamb from UK goes up 40% in the EU, other suppliers don't change.

Also add in extra costs of proving compliance with EU standards on import into the EU and dealing with import processes.

Two points:
1. Wales is 20 mile across the Channel from mainland Europe.  Australia and NZ are 12000 miles away and South America is 5000 miles away.  Welsh shipping, packaging, and freezer costs make them more competitive.  If they can't compete with those others, maybe they should go out of business. 
2. I've proposed in previous posts that GB quickly make a trade deal with America.  I called it BATS.  Then we together could negotiate better trade deals with the EU which would help Welsh lamb producers and American exporters as well.  After all Europe wants to sell their cars to Britain and America and would be willing to make a deal to assure no interruption.

[jeremyrh]

Hence the jerk label 😉

That's the tariff set by the EU. It protected Welsh farmers. Leave voters decided they didn't want that. Nothing to do with being a jerk.

[jeremyrh]

 
2. I've proposed in previous posts that GB quickly make a trade deal with America.  I called it BATS. 

I'd call it bats as well.

[Alan Klein]

That's the tariff set by the EU. It protected Welsh farmers. Leave voters decided they didn't want that. Nothing to do with being a jerk.

So Europeans have to pay 40% more for lamb because of the tariffs.  A shrinking Euro. After all,  80% of imported lamb comes from outside the EU. 

Also, how do those countries complete with Wales now with such high tariffs?  Why are the European buyers being punished with extra high prices?  It seems Trump learned about tariffs from Europe.

[Rhossydd]

1. Wales is 20 mile across the Channel from mainland Europe.  Australia and NZ are 12000 miles away and South America is 5000 miles away.  Welsh shipping, packaging, and freezer costs make them more competitive.  If they can't compete with those others, maybe they should go out of business.

Welsh lamb only becomes uneconomic in the EU, it's major export market, because of brexit and the subsequent tarrifs that will need to be imposed.

You really aren't following this at all.

[Slobodan Blagojevic]

... So price of lamb from UK goes up 40% in the EU, other suppliers don't change...

Hence the jerk label.

[Alan Klein]

I'd call it bats as well.

I thought you'd appreciate the acronym. 

Here's my previous post on it:

"...Here's an idea.  You Brits and we Americans make a trade deal where there are no tariffs between us.  Let's call it, eh, BATS - The British American Trade Settlement.  Then you and we tell the EU they will be charged tariffs if they charge our members, Great Britain and America, any tariffs on our exports to them.  In fact, we will double EU tariffs on their exports to our countries.  Sort of what we're doing to China.  What do you think the German auto manufacturers from Mercedes, BMW et al will tell Merkel?  "Das Brits and das Americans are batty.  You got to drop tariffs or ve go out of business."  Walla!  Now GB and the US are selling our goods to Europe with no tariffs. The Irish march in the street praising, "Long Live the Queen and all Her Little Grandchildren."

You see how that works."
https://forum.luminous-landscape.com/index.php?topic=129874.msg1122598#msg1122598

[Alan Klein]

Alan, why are you so argumentative, without offering something more than assumptions, something of substance maybe?

How about you provide a link to an overview of the differences between the NAFTA deal and the proposed new deal. That would be more productive, and not take too much time to handle the off-topic subject, wouldn't you think?

One of the major points of Trump was to reduce the Trade-deficit, but that is not directly covered by the deal, the USA should produce more for its own consumption and buy less from others, but the other nations have no say in that. There also seems to be substantial pushback from the US Congress, so more homework needs to be done before claiming success.

Cheers,
Bart

Bart, You totally missed my point.  Maybe it's a language barrier.  Rob said Trump is cruel, you can't negotiate deals with him.  Meanwhile Trump made a trade deal with Canada and Mexico.  So apparently he isn;t inflexible, cruel, or nuts.   He'll make a trade deal with Britain too. 

[jeremyrh]

Hence the jerk label.

"hence" implies that there is a logical process. Which there clearly isn't.

[Alan Klein]

Welsh lamb only becomes uneconomic in the EU, it's major export market, because of brexit and the subsequent tarrifs that will need to be imposed.

You really aren't following this at all.

Why is Welsh lamb uneconomic in Europe because of a 40% tariff that has to also be paid on lamb from New Zealand, Australia and South America?
 That just makes an even playing field.

Now, if you're saying that Welsh farmers have gotten sloppy in their business practices because their products didn't have the 40% tariff before, and now will be uncompetitive because they lost the competitive edge, you might be right.  So what they'll have to do is sharpen their business practices so they can compete with others like Australia and New Zealand.   After all, nothing else sharpens a person's attention like the hangman's noose. 

[faberryman]

Wales is 20 mile across the Channel from mainland Europe.

You might want to check a map of the UK.

[Rhossydd]

Why is Welsh lamb uneconomic in Europe because of a 40% tariff that has to also be paid on lamb from New Zealand, Australia and South America?
 That just makes an even playing field.

No, because they already have tariff free agreements with the EU.

You really are demonstrating a lack of knowledge of a very complex issue.

[Slobodan Blagojevic]

"hence" implies that there is a logical process. Which there clearly isn't.

It all started with warnings about impeding food shortages, social unrest in the U.K., and recession even in the EU. With the EU clearly adopting the punitive path “We’ll show you, British mofos, what happens when someone wants to leave our hotel California,” as a deterrent for anyone else trying to leave the proto-socialist paradise. Hence the 40% tariffs and other stuff. There’s your logic.

[Alan Klein]

No, because they already have tariff free agreements with the EU.

You really are demonstrating a lack of knowledge of a very complex issue.

So Britain will have to negotiate a similar arrangement.  They could start by imposing a tariff on European cars.  Watch how fast the EU drops the 40% tariff on Welsh meat.

[Alan Klein]

No, because they already have tariff free agreements with the EU.

You really are demonstrating a lack of knowledge of a very complex issue.

You really have to get on with it.  The train has left the station.  Whining about Brexit isn't going to get you anywheres. 

[faberryman]

You really have to get on with it.  The train has left the station.  Whining about Brexit isn't going to get you anywheres.

The train has been trying to leave the station for three years rather unsuccessfully. We'll see if it makes it out on October 31st, and if so, what the consequences may be. I'd say the whining has just begun.

[jeremyrh]

It all started with warnings about impeding food shortages, social unrest in the U.K., and recession even in the EU. With the EU clearly adopting the punitive path “We’ll show you, British mofos, what happens when someone wants to leave our hotel California,” as a deterrent for anyone else trying to leave the proto-socialist paradise. Hence the 40% tariffs and other stuff. There’s your logic.

The step you missed is that the UK CHOSE to move to that regime. The EU didn't do anything.

[Alan Klein]

The train has been trying to leave the station for three years rather unsuccessfully. We'll see if it makes it out on October 31st, and if so, what the consequences may be. I'd say the whining has just begun.

I understand there are going to be tough times ahead.  But complaining how bad it's going to be and throwing up your hands in anguish isn't going to help.  GB is going to be faced with all sorts of trade issues with Europe.  But trade is a two-way street.  If Europe punishes GB, there will be retaliation.  I think the EU understands that.  If they don't, then a quick tariff on European goods sold in BG will wake them up. 

[Alan Klein]

Indeed. And an agreement has been drafted. It just hasn't been ratified because of UK politics.

Cheers,
Bart

Once GB exports go down, they'll wake up and do something.