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BREXIT: The Case for Staying In

GOODS TRADE

  • From outside the EU, the UK would have to conform to EU product rules but have no influence in setting them.
  • The EU is in a stronger position to negotiate trade deals with non-EU countries than the UK would be on its own.
  • Some manufacturers have threatened to leave the UK if it was outside the Single Market.

 

SERVICES TRADE

  • UK-based financial services would lose their ‘single passport’ to operate in EU markets.
  • To access EU markets, UK firms would still have to conform to EU regulations with no influence over setting them.
  • The UK has much to gain from remaining in the EU working to complete the Single Market in services
  • Euro-area institutions are trying to bring more euro-dominated trading and settlement within the Eurozone. Outside the EU, the UK would find it hard to prevent this.

 

CAPITAL MOBILITY

  • By staying in the EU, the UK could drive and shape the proposed Capital Markets Union.
  • The UK risks losing inward foreign direct investment from non-EU countries if it is no longer a platform to access the Single Market.
  • For UK companies operating in the EU, the lack of capital restrictions and single legal framework simplify procedures for raising capital and investing across jurisdictions.

 

LABOUR MOBILITY

  • If the UK joined the EEA or took the Swiss approach, the UK would remain committed to freedom of labour movement of meaning it could not restrict EU immigration.
  • Inward migration helps with skill shortages, a shrinking domestic workforce and may help keep costs and prices down in some sectors.
  • Studies show EU migrants are net contributors to UK public finances and there is no evidence that immigrants take jobs away from UK-born workers

 

BUDGET IMPLICATIONS

  • The U.K.’s GBP10bn net contribution to the EU budget is just 0.6% of GDP and the indirect benefits intangible but could be large.
  • Freedom from the Common Agricultural Policy would simply mean Britain would need to devise its own framework of subsidies for farming.
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31.03.2016
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