John Baron MP: The Twelve Days of the European Union – 3

3 – 3% is the average EU tariff on US products

As we approach the final furlong to the EU referendum, and with the necessary apologies to the ‘Twelve Days of Christmas’, John Baron MP is sharing his ‘Twelve Days of the European Union’, setting out why we should vote to leave on 23rd June. Further daily instalments to follow.

Many countries already trade easily with the EU, and tariffs are falling steadily – the US’ average tariff is under 3%. Even if the EU chose not to sign a free trade deal with a post-Brexit Britain – which would be contrary to its interests, given the balance of trade in its favour – such small tariffs would not prevent extensive trade. In addition, World Trade Organisation rules would prevent the EU applying punitive tariffs.

John said,

“The Lisbon Treaty allows a two year window to negotiate a mutually acceptable settlement as part of the leaving process – this would, in all likelihood, include a trade deal. But we should remember that trade is not dependent on trade deals – as our many purchases of Chinese products illustrate. Countries from around the world, many much smaller than ours, trade profitably with the EU – some have trade deals, and some not.”

“Even without a trade deal, both the UK and EU would be bound by the World Trade Organisation’s ‘most favoured nation’ tariffs paid by other nations – the USA’s average tariff is currently around 3%. Even if wanted, punitive tariffs could not be imposed.”

Quote of the Day:

‘Only together, as the European Union, can we give our citizens what they aspire.’
(José Manuel Barroso, President of the European Commission, 2004-14)