Eurosceptics beware: Just because developing economies grow faster doesn’t make them attractive for UK exporters

This is actually a reply on a previous post, which deserves to be elevated to a blog post in its own right, because it makes an important point kippers just don’t get when tweeting their #brexit nonsense.

I think UK Eurosceptics deliberately miss my point about the rest of the world (ROW) not necessarily being such a promising market for UK goods after #brexit. Of course when developing economies are in a growth spurt, they often need to import certain goods they cannot produce enough of themselves. These will be mainly bulk goods like more oil, more wheat, more timber, but especially new plant equipment to kit out new factories they’re planning.

So yes, these developing nations show promising international trade figures along with healthy GDP growth of 4- 6-8 %  that kippers get so excited about and like to compare to 0.4% growth we now see in the EU. In a kipper’s mind Britain is missing out on this trade that undoubtedly exist in other parts of the world and countries like Germany tap into so well. Why not UK they wonder, and the answer is always leave the EU to make it happen.

Problem is the UK is not a producer of the kind of goods developing countries are crying out for. Germany does, because their engineering sector has not been totally replaced by the service sector. Germany doesn’t just make paint, but also the machines that mix up the paint and put it in tins. So if it’s a bottling plant you’re after, chances are high that you get that sort of thing from Germany. In the UK economy, the manufacturing sector mainly makes luxury end-consumer goods for our home market which, at no 5 in the world, is considerable in its own right, although dwarfed by the EU common market size as a whole.

And sure, the budding entrepreneurs and leading politicians in BRIC  and Commonwealth countries will buy the odd Jaguar and armoured Range Rover. Their dealerships are already present in those region’s capitals and industrial centres. I am sure they do just fine just like any German quality car dealership.

However kippers forget the average income of the bulk of consumers in developing nations is often around the thousand dollar mark. Average income people there just don’t have the cash laying about to buy expensive items from us in volumes that count. That’s why on twitter I jokingly photoshopped a UK Nissan next to an African tribal hut. As if!

In France, Holland and Germany and other EU countries, they can however afford UK products. Their disposable income is often even higher than ours. Also in North America and Australia this is the case. That’s why trade with those countries is good. In fact they positively adore UK produce in those markets and we should stimulate the demand for UK goods on the European continent, not turn our back to it.

Why are we so bad at marketing the UK in the rest of Europe? Why have I never seen a commercial for UK Nissans on French TV? I have seen plenty for Citroen in the UK!
Do we think customers will come running to us just like that? Begging for our produce like they did in the colonies in the days of the empire?

We need to reach out, not distance ourselves from our European neighbours.

Yes,  3 million UK Jobs really depend on EU membership!

In today’s EU we now have intricately interwoven supply and production lines that span the entire EU and sometimes beyond. How interwoven they can be is illustrated by the fact that a UK production line can be halted in a matter of days by a short strike at the port of Calais. Tightening those borders and brexit, as kippers advocate, would only make things worse. Why not open them completely and join the Schengen area? These are the things which EU and eurozone membership favours and #brexit threatens. Not many UK politicians have the guts to come out and say so. It would be political suicide.

It is around this point kippers and other Eurosceptics steadfastly change the subject with words like: ” Yes but anyway, it’s not about the economy, the real reason we hate the EU so much is because the is EU killing its member state’s sovereignty, taking away their identities by homogenisation and killing diversity. These kind of arguments are just too batty to deserve a reply. I will always archive them under xenophobia and the onset of dementia in kippers.

Points about EU labour mobility however are more interesting. It just so happens I am in favour of it, because again it benefits the economy. In the USA you had two major aircraft manufacturing companies, Boeing in the North and McDonnell Douglas in the south. If one was booming and the other lagging thousands of skilled aircraft industry workers thought nothing of migrating north or South with their entire families to where the work was. Their skills were not lost on the dole. It is a fantastic thing we should copy from the flexible US economy, not oppose as kippers do.

When old British people retire to a depopulated  French countryside and their UK jobs are taken over by young skilled EU workers attracted by a booming UK economy, again that is a win-win in economic terms for all concerned.

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About lasancmt

Passionate about Identity Management Disgusted at #ukip and #brexit
This entry was posted in #brexit, EU, EURO and tagged , . Bookmark the permalink.

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