As EU members, we participate in over 750 international treaties.
Many relate to trade, enabling us to trade freely with the EU, the EEA, and 40+ other countries. 1/26
Right now, we share in trade deals with 78 countries (22 more pending). These deals cover 60.7% of all our of all our goods imports, and 66.9% of our exports. 4/26
In the absence of trade deals, we will be reduced to trading on WTO terms. WTO is a complicated system of tariffs and quotas, plus a baseline set of rules 5/26
Tariffs are paid by importers, but of course they then 8/26
Right now, UK manufacturers can sell cars to the EU tariff free. But under WTO, those cars will be subject to 10% tariffs, effectively making UK-made cars 10% more expensive for EU consumers.
But all the major car manufacturers 9/26
WTO gives us the right to control the tariffs on our imports, even reduce them to zero 10/26
"Most favoured nation" is possibly the most misleading expression ever, because what it really means is that *we* are not allowed to favour one nation over another in our WTO dealings. 11/26
But we can't set a tariff of 0% for just one country. If we decide to drop the 12/26
That's great if you love cabbages, but absolutely devastating if you're a UK cabbage farmer. 13/26
Short answer: they won't. 17/26
However, "most favoured nation" would kick in. The EU would be forced to offer every country in the world 0% tariffs on cars. 18/26
So, in practice, trading on WTO terms will mean that everything we make in the UK will be more expensive 19/26
And we will be faced with the impossible task of choosing product by product, industry by industry, which producers to protect 20/26
If all of the above sounds grim, that's because it is. There are no countries in the world that trade exclusively on WTO terms with other nations. None whatsoever. 21/26
We will have none. Nothing at all. No country has ever torn up all its international arrangements before (quite frankly, none have been crazy enough to). So we will be in a very lonely, exclusive club. 22/26
A) Don't understand what that means
B) Are lying to you
For example, Patrick Minford (of Economists for Brexit) is on record as stating that WTO would destroy the UK car industry, but that it 23/26
In other words, Brexiters see manufacturers as collateral damage, to be swept aside in pursuit of Brexit.
Perhaps you're not so sanguine? Perhaps you would quite like the UK to keep manufacturing things? 24/26
Estimates for the likely damage range from 7%-10% of GDP. Even at the low end, that's worse than the 2008 financial crash.
But unlike the crash, we'd be willingly 25/26
And the ultimate end result would be the return of austerity, not for a few years, but for decades or generations to come.
WTO: just say no!
(Related aside: there's no such thing as a "WTO deal" - trading on WTO terms isn't a "deal", it's a major punishment compared to now.)
If after reading it, you continue to believe it, there is only one conclusion: you are lying to yourself.
By repeating those lies, you are harming others. And that makes YOU the problem.