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That's not true. It's only true if both sides can compete on equal terms. The EU guarantees that. Without Britain in the EU, there will be situations where tari
by bayesian_horse 10y ago
That's not true. It's only true if both sides can compete on equal terms. The EU guarantees that. Without Britain in the EU, there will be situations where tariffs are beneficial for one side.
- UK-AL 10y agoNo. Generally no tarrifs benefit both. Comparative advantage and all that.
- bayesian_horse 10y ago"Generally" strongly assumes equal or even perfect competition. For example say Country A and B trade coal and agree to no tariffs. Country A now cuts back on worker protection and wages, such that their coal is cheaper. Country B's only other chance than doing the same would be to raise a tariff to keep its own coal competitive. That's why Country B wants a say in Country A's labor laws.
- barrkel 10y agoAnd this is exactly the reason for a supra-national body that comes in with annoying regulations and red tape that stops you from competing with Johnny Foreigner in the full-blooded way you want to. Let the race to the bottom commence!