No it isn't but it does remove most of the tariff barriers. Which at least dispels the often made point that we are going to see huge tariffs introduced when we leave the EU.
The non tariff barriers work both ways and we have never seen a trade deal made between two parties who have the exact same standards before and existing trade as large and beneficial to both parties as we are about to see with the UK and the EU over the next 2 years or so.
So the EU is going to have to make its mind up about whether you believe in free trade deals which remove barriers and create wealth and increase living standards or not. Post Brexit the UK will not be the ones looking to put in place barriers on trade between the UK and the EU even though our balance of trade is in deficit.
The larger point in the article you posted is that the EU doesn't really do free trade deals it just finds different forms of protectionism. You might think that is a good thing but it contradicts the whole ethos of the free market.Why have one at all if you believe protectionism is the way forward and if free trade is your prefered ethos then why the protectionism in deals with countries outside the EU?
Either way Britain will be free to make its own deals with the whole of the rest of the world starting soon.
Well, not really. On paper there's barely any difference between 98% and 100% of tariffs. But when you go to the nitty gritty of stuff you'll notice that there's a big difference
a- 25% of tariffs are already redundant. That's because the tariffs are so low than it doesn't really make a difference
b- Sensitive products are still under heavy tariffs (ex farming)
c- Harmonisation of rules is key. The EU might change the rules or state that the UK standards aren't up to the EU standards banning their products altogether.
Not to forget that CETA does not give Canada any financial passporting at all. Therefore it is nowhere near to an equivalent to unrestricted access to the single market.
Regarding who will be hurt the most, 13% of the UK GDP depends on the single market as opposed to just measly 3% of the EU GPD depends on the UK market. In matter of fact a looping 44% of UK exports go to the single market. Therefore its pretty evident whose got the shorter side of the stick.
Leavers love to remind people of how the UK will make free trade deals with the other countries. Its seems there's a free trade deal waiting to be signed with New Zealand. There again, these trade deals will never mimic what the single market give the UK, for two simple reasons
a- the distance between the EU countries and the UK is relatively short. For most UK products (ie those who are relatively cheap and the profit margin is small) a trade deal with a country at the other side of the world is meaningless because transportation costs will eat up most of the profit
b- unrestricted access to the single market allowed Europe's manufacturing system to become integrated with one another.For example a car can be assembled in a UK plant, with parts coming from Poland. who had been previously assembled in Romania using German expertise. That is something you can't mimic with New Zealand and Rest assured that its something EU politicians will make sure to include that among the 2% tariff list. I mean its in their interest to force UK based companies to move to Europe.
The United States of America, the Russian Federation, Nafta, Asean, Union of South American countries, African union....these are all attempts meant to unite neighbouring regions and countries and build an integrated economy because in unity there's strength. Brexit defies logic. Its isolating a country in a world which is ganging up in regions. I've yet to think of one country who wants to burn bridges with the continent it is in. Not even the US had done that.
Giving the UK a soft Brexit would encourage other countries to leave the EU and would act as an incentive for the big guns (China or the US) to expect more out of any possible trade deal from the EU. After all the UK is a non EU member just as they are and if they can have the cake and eat it so can others. That's something the EU can't accept.
Ah and I almost forgot. Canada is a European ally. Not giving them a good deal would be translated to giving a big slap to a friend. Can you say the same about the UK? Especially after they managed to insult most of the EU countries and blaming most of their ills on their citizens
