Where do all the cars go?

Comments

Steve Coltman - Loughborough

Most of us will have just received this (attached) from the EM web-site, stating that 82% of cars made in the UK are exported, and half of these go to the rest of the EU. It goes on to claim that POTENTIALLY 3% tariff could be imposed on our car exports to the EU if we left. Note the weasel-word 'potential'. Note the implied threat to jobs and exports.

It seems to me that much of the arguments for remaining in the EU come in the form of threats, some of which, like this one, are empty threats. 80% of the cars sold in the UK are imported. Has anyone noticed how many come from Germany? How loud do you suppose the Germans would scream when we impose a 3% import tariff on their cars imported into the UK, and how long before it was quietly agreed not to impose any tariffs at all?

There is legitimate debate and there is low propaganda, please keep the latter off the EM web-site.

Bill Newton Dunn - MEP

I agree, Steve.

There is no basis for a potential 3% tariff. Nothing has been discussed in Brussels. Because they all hope the UK will remain members.

Incidentally, there will be a referendum, maybe around 2017, not because of Cameron's half-promise, but because the other member countries are intent on another new Treaty to take them towards "ever closer union" and when that treaty appears, it will trigger referendums in various countries including of course the UK.

So Cameron's "offer" was actually cleverly worked out so that he can say "there you are, and I offered it voluntarily..."

Chris Nelson - Kettering and Wellingborough

Our workers are skilled, our transport links are good and our labour practices are competitive - and above all, by assembling cars in Britain, you can access the largest and most lucrative single market in the world. Without that market access, why not move production to Italy, Spain, Germany or Poland?

You say that there would be "an outcry" from German manufacturers about their imports - ignoring the fact that most of the "outcry" so far in Germany has been political rather than economic.

But ask yourself this:

• Would these non-European car manufacturers really continue making cars in the UK if there is no benefit to them in terms of avoiding import tariffs?
• Would British car makers be as competitive on the continent if our cars had to pay such tariffs?
• And would we "really" stop importing foreign cars? They're actually rather good - and if our own car makers are struggling for market share, it's going to be difficult to compete.
• There's also the added issue of labour rules - namely the common market is based on different countries having similar labour laws to prevent a "race to the bottom".
• If the Tories were able to use withdrawal to scrap the working time directive, say, EU countries would be distinctly less willing to give UK manufacturers equal access to EU markets.

Now it may well be that on exit from the EU that we could negotiate a better deal than this - that we "might" be able to negotiate tariff-free trade. But what
price would we need to pay to do so?

We should be under no illusions of who needs the other in which trading relationship. The European Union is our biggest export partner. We, however, are much less significant to the European Union - they'd like to trade with us, but not at any price. In short: we need them more than they need us, and
that makes for a lousy negotiating position.

So what would we need to do instead?

• Pay a hefty membership fee?
• Accept unfavourable trading terms on other goods?
• Have to agree to be subject to laws to which we genuinely have no say in drafting, and which is framed to benefit the Eurozone? (As in Norway
• Or something else unpalatable?

Any scenario in which Britain leaving the EU is actually financially beneficial to the UK is fantasy land - and it's not "propaganda" to say so.

Steve Coltman - Loughborough

The UK is the eurozone's largest single export market (accounting for 25% of their exports according to one report I read). When free-trade agreements are being negotiated else where it seems highly unlikely that anyone on either side of the English Channel would want to erect tariff barriers where none now exist. Furthermore, tariff barriers are not an insuperable obstacle to us trading with the USA, which is our largest trading partner as defined by country.

My real point is this - the euro-enthusiasts seem to have no arguments to deploy except threats. If you want to win this debate you will have to think of something better with which to persuade the electorate.