Throughout the EU referendum and the subsequent wranglings over what form Brexit should take, one of the arguments put forward by opponents of the European Union has been the assertion that the EU is an enemy of free trade. Tariffs that the EU imposes on certain types of goods imported from non-EU countries, eg. agricultural produce from African countries or clothing from China, are cited as examples of a protectionist policy that both helps to perpetuate poverty in the developing world and to punish European consumers by denying them access to cheap goods. The need for Britain to strike free trade deals with growing economies across the world has been pushed as one of the main arguments for Brexit, with cheaper food, clothing and footwear being touted by the likes of Jacob Rees-Mogg as some of the tangible benefits that will accrue to the ordinary British shopper.With the looming possibility of a ‘no deal’ Brexit, this depiction of the EU as an essentially protectionist institution seems to have grown in popularity, and I have heard it used frequently in recent weeks as a way of urging the complete disassociation of Britain from the EU’s single market and customs union. Outside of these institutions, it is claimed, Britain will be able to thrive by slashing or completely removing all tariff barriers with the rest of the world, to the benefit of consumers and, ultimately,the UK economy as a whole.
Just this morning I heard someone on the radio (I didn’t catch who he was, probably a spokesperson from some think-tank or other) putting the case for free-trade as a way of generating economic growth and national prosperity, and framing it as an argument for leaving the EU and not remaining a part of the EU customs union. In other words, an attempt is being made to use the powerful and persuasive economic arguments about why free trade is superior to protectionism, in the service of a hard-Brexit stance.
This approach is, in my opinion, either dishonest or mistaken. One of the reasons that I voted for Britain to remain in the EU, and that I would, even if Brexit happens, like us to remain in the customs union and, ideally, the European Economic Area as well,is the fact that I am a supporter of free trade. I’m sure this is true for many, if not most, of those who voted Remain in the referendum. And, of course, the party which is most strongly associated with the Remain position, the Liberal Democrats, is also the party which – both in its current form and as the Liberal Party - has historically been most strongly associated with advocacy of free trade and opposition to protectionism.
The European Union is the largest single market on the planet, and provides for completely tariff-free trade between all member countries. This freedom of trade is further assisted by a common regulatory regime which serves to minimise ‘non-tariff barriers’ such as differences in product standards, food safety regulations etc. It also provides a common minimum set of standards in workers' rights and environmental protections in order to prevent a 'race to the bottom' which could, otherwise, be a downside to the benefits of international free trade.
As well as freedom of movement for goods, services and capital, the EU guarantees the free movement of EU citizens across all internal European borders. This is crucial, because the same logic which demonstrates the harm caused by the erection of barriers to free trade in goods and services, and to the free movement of capital for investment, makes it inevitable that barriers to the free movement of that other factor of production, labour, will also be economically damaging. Yet many of those who ostensibly champion the benefits of free trade in order to bolster support for a hard Brexit are the same people who argue that Britain needs to 'take back control' of its borders.
As well as its internal free trade, the EU has free trade deals with many other countries, all of which will cease to apply to the UK after Brexit. And even if the UK were to unilaterally apply zero tariffs on imports after Brexit, this would not prevent other countries applying tariffs against Britain which would, of course, have a damaging effect on our exports and, therefore, on the British economy in general.
If Britain really is a champion of free trade then it would seem to be a very retrograde move to be about to leave such a gigantic and well established free trade block which also happens to be literally on our doorstep, while simultaneously opting out of all the existing free trade agreements hitherto negotiated on our behalf by that block, and having to begin again, from a much weaker starting point. To claim to be doing it in the name of free trade seems positively deluded.
