Britain's Free-Trade Dilemma: Threats to Jobs and Prosperity

Senator Phil Gramm's proposed free-trade agreement between the US and the UK would damage both countries, as it would require the UK to leave the European Union. This would jeopardize 3 million British jobs that rely on exporting to Europe. The UK's trade policy is currently managed under the EU, providing tariff-free access to 375 million consumers. In contrast, leaving the EU would result in potentially 8.7% tariff barriers from the EU. American companies, such as Ford Motor Company (UK), also rely on the UK's EU membership to export to the EU market.

Key Takeaways:

• The UK's trade policy is managed under the EU, providing tariff-free access to 375 million consumers.
• Leaving the EU would result in potentially 8.7% tariff barriers from the EU.
• 3 million British jobs rely on exporting to Europe.
• Ford Motor Company (UK) exports approximately £2bn a year to the EU market.
• The White House does not support the proposed free-trade agreement.
• Senator Phil Gramm's proposal would require the UK to leave the EU.
• Britain's EU membership allows American companies to export to the EU market.
• Prof. Mirrlees also favors free trade, but believes the UK has more clout to push for global free trade by having a strong voice at the heart of Europe.

Statistics:

• 3 million British jobs rely on exporting to Europe.
• 58% of the UK's goods exports go to the EU.
• 13% of the UK's goods exports go to the US.
• 375 million consumers have tariff-free access to the UK due to its EU membership.
• 8.7% tariff barriers could be faced by the UK if it left the EU.
• Ford Motor Company (UK) exports approximately £2bn to the EU market.
• 60% of trade between the UK and the US is tariff-free due to existing EU-US agreements.

Sources:

• Podium (6 July)
• Office of National Statistics (1999)
• National Institute