David Davis told Andrew Marr on Sunday 25 June 2017 that “Exports to EU from UK were about £230 billion and Imports from EU were about £290 billion”. The more correct figures were £240 billion exports and £290 billion imports for 2016.
What he forgot to mention was that Sterling was down compared to the Euro by 13.7% since the EU membership referendum in the UK. If trade in goods and services remained the same in quantity terms, our exports to the EU would be a few percentage points cheaper to EU customers and our imports from EU will be a few percentage points dearer in 2017. On the trade deficit of about £50 billion in 2016, we would lose about £4 to £5 billion more just due to devaluation of the pound in 2017. If Sterling does not recover, then we shall lose this extra £4 to £5 billion every year.
When one considers all the advantages of just keeping the status quo, the numerous advantages outweigh the disadvantages by a ratio of 2 to 1 if a forensic analysis of costs and benefits were undertaken. If it ain’t broke, do not fix it. Keep repeating this as a Brexit Mantra. If UK truthfully wants to put its economy as the most important priority, then it should not only opt for the four freedoms of movements of people, goods, services and capital, but add the fifth freedom which is adoption of the Euro currency.
Nagindas Khajuria
By email
