Brexit means barriers to trade

Many people, including politicians and journalists, don’t know the difference between FREE TRADE and FREE & FRICTIONLESS TRADE.

This has caused a huge misunderstanding across the country.

? IN THE EU, we have FREE & FRICTIONLESS trade with countries across Europe – our biggest and most important marketplace by far, where almost half of ALL our exports go to, and over half of ALL our imports come from.

FREE & FRICTIONLESS trade means that goods, services, people and capital - the ‘four freedoms’ - freely move between EU countries without any barriers. Not only are there no tariffs, there are effectively no borders.

With ‘frictionless trade’ there is a level playing field between EU countries for ALL trade.

That makes exports and imports between EU countries super-efficient, leading to friction-free, streamlined delivery of products and services, and of course, increased profits and more successful national economies.

The EU’s Single Market works by EU countries democratically agreeing a common set of rules, along with unified external tariffs to protect Europe's businesses and jobs.

Achieving this has made the EU the planet’s largest and most successful trading bloc, and the world’s biggest exporter and importer of manufactured goods and services.

Indeed, the foundation just over 25 years ago of the EU’s Single Market - championed by former British Prime Minister, Margaret Thatcher - has directly boosted the EU economy by 25% and created 3.6 million jobs.

Studies show that the EU’s gross domestic product (GDP) has grown by several percentage points thanks to the Single Market and its four freedoms. This is hardly surprising, when one considers that two-thirds of all goods produced in the EU are exported to another EU country.

Now, the EU is developing its Single Market by creating a new Digital Single Market, which it is estimated could contribute €415 billion per year to economic growth across the EU, boosting jobs, competition, investment and innovation.

Britain greatly benefits from the EU Single Market, but it will only continue to do so by remaining a member of the EU.

It gives UK businesses unfettered access to 500 million customers in all EU member states.

In turn, it also allows UK consumers and companies to purchase goods and services from across the continent. It completely eliminates tariffs and reduces costs and administrative burdens by applying one set of rules across all member states.

It also means that British businesses can easily hire the staff they need from across the continent, and Britons can regard the entire EU as their jobs market.

This is a boon, not a burden. In recent times - whilst part of the EU Single Market - the UK has benefited from the highest employment rate since records began in 1971, and the lowest unemployment rate in decades.

? OUTSIDE THE EU, Britain will have - at best - FREE TRADE with the EU, but not FRICTIONLESS TRADE.

FREE TRADE ONLY will mean that some or all goods (but not services, upon which most of the UK economy depends) can be exported and imported between us and the EU tariff-free.

But those goods, even though tariff free, will have to go through customs and be subject to checks, often causing delays.

Even though it’s called ‘free trade’ there are other barriers as well as customs – such as regulations, restrictions, strict compliances and complicated documentation.

So, for example, a Canada-style trade agreement between the UK and the EU – so coveted by ardent Brexiters – could give us tariff-free trade, but it wouldn’t give us frictionless trade with the EU.

The loss of frictionless trade will have hugely detrimental impact on British industry.

For example: BMW UK imports around 90% of its parts from the EU to enable it to manufacture the Mini in the UK. If we no longer have frictionless trade with the EU, says BMW, it would destroy their just-in-time manufacturing process, meaning they would be ‘forced’ to move their Mini factory to Holland.

The loss of free trade with the EU will also be hugely detrimental to British businesses and jobs.

If the UK leaves the EU without any free trade agreement, the cost to British exporters - in increased tariffs alone - would be at least ￡4.5 billion a year. That could make continued business impossible for many.

In the general election on 12 December, vote for the party or candidate that offers the best chance of a democratic U-turn on Brexit, so that we can keep the many benefits of the EU Single Market.

• Watch this 90-second video about the EU's Single Market:

• Commentary and graphic by Jon Danzig.
• Please re-Tweet: twitter.com/Reasons2Remain/status/1200130633231720449
• Reasons2Remain is a campaign for a democratic reversal of Brexit.