By: Ben Ramanauskas (@BenRamanauskas)
The ‘Remain’ camp has been propagating numerous myths about what would happen to Britain if we vote to leave the EU. Here are 3 such economic myths and why they are wrong.
(i). Our Exports to
the EU Will Suffer
Pro-EU activists have argued that if the UK leaves the EU,
we would lose access to EU markets and so British exports would suffer as a
result. This is an absolute nonsense. Many countries-often less politically and
economically significant than the UK- have successfully negotiated free trade
agreements with the EU. The UK is an incredibly important trade partner for many
EU countries and so it would be ab act of economic suicide for the EU to not
enter into a free trade deal with the UK.
Pro-EU MP Stephen Kinnock made the completely unfounded
claim that the EU would give the UL a ‘punishment beating’ if we left. Such a
statement reveals a breathtaking ignorance of international trade law given
that the World Trade Organisation prohibits the enactment of punitive tariffs.
Furthermore, such a move would be contrary to the Lisbon Treaty which states
that:
The Union shall develop a special relationship with
neighbouring countries, aiming to establish an area of prosperity and good
neighbourliness, founded on the values of the Union and characterised by close
and peaceful relations based on cooperation.
If Britain leaves the EU will continue to enjoy a free trade
agreement with the EU.
(ii). Firms Will
Leave the UK
The majority of CEOs who have been asked about this have
stated that they would not move their companies to a different country in the
event of Brexit. If there were any benefits for leaving the UK, the costs
involved in relocating a company to another country would surely outweigh them.
Furthermore, many small and medium enterprises have indicated that they would
favour Brexit as they are adversely affected by excessively restrictive EU
rules and regulations. Their businesses would be able to thrive if the UK left
the EU.
A UK free from excessive EU regulations would continue to
attract some of the world’s biggest companies and would provide an environment
conducive for small businesses to flourish.
(iii). We Will Lose
Foreign Investment
Pro-EU campaigners have argued that if the UK left the EU,
foreign firms would transfer their investments to other countries. This is
wrong for a number of reasons. First, there has been no suggestion from
international investors that they would withdraw investment. In fact, several
large companies have stated that they have no plans to withdraw present or
future investment in the event of Brexit.
Secondly, a recent survey conducted by Ernst & Young
revealed that two-thirds of Asian investors and 72 per cent of US investors
would prefer for the UK to have a more flexible relationship with the EU. As a
result, the UK would be likely to experience greater foreign investment if we
left the EU.
Finally, the UK enjoys certain advantages which make it an
attractive destination for foreign investment. For example, we have a
competitive tax system which encourages investment. We have a stable political
system which reduces the risk of uncertainty for investors. Our legal system is
widely regarded as one of the best in the world which is why many businesses
around the world insist upon their commercial contracts being governed by
English law. We are also between the US and Asian timezones. Although our
weather often leave much to be desired, there is no risk to investors due to natural
disasters. Furthermore, the UK has got linguistic, cultural and historical ties
with countries around the world- including some of the most powerful and
fastest growing economies.
3 'Remain' Myths About Brexit
Reviewed by Student Voices
on
16:07
Rating:
Where there are loads of Remain myths, none of those three are. Several high profile companies have explicitly said they will reduce UK investment of pull out of the UK should we leave the EU, while it takes the EU roughly 10 years to draft a trade deal. Even if this process were accelerated, that's a long time with no trade at all no matter the anti-competitive decisions the remaining EU makes afterwards.
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