The UK is facing a binary choice between a deep trading relationship with the EU or the US, according to a report from MPs on the International Trade Committee (ITC).
Efforts to drop regulations in a bid to land a quick Free Trade Agreement (FTA) with the US could result in the erection of fresh trade barriers between the UK and the EU, the report claimed.…Detailed report. Longish.
The Telegraph
UK faces 'binary choice' of EU or US trade, MPs warn
Anna Issac | Economics Correspondent
3 comments:
Yes the systems are different.
The EU uses a premptuve system (precautionary principle) the US is reactive.
http://www.eureferendum.com/blogview.aspx?blogno=86671
I'm not sure that that's how it's going to work. I assume UK trade with EU has the same dynamics as US trade with China. In the case of the latter, there's a reason that China is buying the US currency using goods and services that it exports to the US. Some of it has to do with US corporations in China making profit there and needing to repatriate their profit back to the US. Some of it has to do with dollar-based financing in China, and China needing dollars to pay interest on those loans.
I suspect the same dynamic is going on between UK and EU. That is, there's a reason that the EU is buying UK's currency using goods and services they export to the UK. And I don't think that's going to fundamentally change.
Post a Comment