This takedown of the Sun’s Brexit ‘bargains’ retweeted by Jacob Rees-Mogg is essential reading
The Sun sought to reassure readers worried that Brexit might not be all it’s cracked up to be by listing things that will be cheaper in our post-EU world.
It was so exciting that Jacob Rees-Mogg retweeted it (with one notable exception).
Thanks to the Sun for calculating the huge savings for us all outside the Customs Union, except for the one on cigarettes which no government would pass on pic.twitter.com/2LWIpTXlUC
— Jacob Rees-Mogg (@Jacob_Rees_Mogg) February 27, 2018
We hesitate to suggest the Sun might not have it 100% right, but people wondered if, well, is this the whole picture?
Step forward this chap, who probably knows what he’s talking about, with an easy to understand 14-point dismantling of pretty much the entire thing.
1.
1/ Several people have asked for a non-technical explanation of why this S*n article about EU trade policy that Mogg is promoting is false. Here goes. https://t.co/az5Qx080Q3
— Steve Peers (@StevePeers) February 28, 2018
2.
2 First of all, no tariffs are charged on goods coming from the EU (obviously) or from countries with which the EU has a free trade deal. That includes South Korea (TVs).
That means that the majority of these products sold in shops haven’t been subject to a tariff. So no saving
— Steve Peers (@StevePeers) February 28, 2018
3.
3 The EU has FTAs with some developing countries and reduced or zero tariffs with many others.
So for bananas, most African and Caribbean bananas don’t face a tariff; Latin American bananas do. A bit more on that (I wrote an article on it years back: https://t.co/QACw8YDFtZ )— Steve Peers (@StevePeers) February 28, 2018
4.
4 Bananas were the last area of EU trade policy to be harmonised in 1993-4, because EU countries tended to favour bananas from former colonies (if they had them) or Latin American bananas (if they didn’t). Also there are a few EU bananas grown in the Canaries etc.
— Steve Peers (@StevePeers) February 28, 2018
5.
5 After a bitter argument the EU decided to favour the African/Caribbean bananas from some Member States’ ex-colonies – although the extent of that preference has since been reduced after much EU and WTO litigation.
“Wicked EU!” the Moggies cry. But wait…
— Steve Peers (@StevePeers) February 28, 2018
6.
6 Favouring African/Caribbean bananas was *UK policy* due to Commonwealth links and because *UK companies* made money on the trade. Ditto France for the equivalent reasons. *Germany* was outvoted and annoyed – due to consumer reaction and losses for German companies.
— Steve Peers (@StevePeers) February 28, 2018
7.
7 The US complained in the WTO – despite not growing bananas – because *US companies* made money from the Latin American trade. So the free trade advocates weren’t being altruistic (*gasp*). “Follow the money” covers everyone’s motives here.
— Steve Peers (@StevePeers) February 28, 2018
