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This is Stupidity on fecking stilts. [THREAD]
2/ if the UK drops substantively all its import tariffs, then signing new free trade agreements becomes much, much harder. @EdConwaySky
3/ when signing a new FTA, countries offer to lower import tariffs to each other (usually in return for some added concessions from the other side). If the UK has already dropped its tariffs to the world then the world has no incentives to barter with the UK.
4/ so for example, let's say after Brexit we want a FTA with country X (let's say China). 🇨🇳
5/ As part of the negotiations the UK side says "we have 70 million relatively well off consumers, if you sign a deal with us that allows greater access to City firms to Chinese insurance and banking markets we will drop import tariffs for goods"
6/ if the UK has unilaterally dropped its tariffs (and can't subsequently reimpose them for individual countries under the WTO MFN principle) then we have little to bargain with. We can ask China to liberalise it's approach but that's it - ask.
7/ we are sure people like @DmitryOpines will tell us we are wrong on this if we are.
8/ now the Rees Moggs of the world will say that even if this is true, the benefits to consumers will be massive (cheap food, shoes etc from anywhere in the world). But a lot of that would likely be made irrelevant by the drop in the £'s value and thereby it's buying power.
9/ the other factor to consider is that a sudden drop in tariff walls would batter domestic producers who would not only need to compete with each other and EU competition, but suddenly competition around the world too. Good luck if you work for a UK producer.
10/ the UK can cope with a gradual increase or decrease in tariffs. But combined with the sudden imposition of EU NTBs, we are likely looking at a real terms recession in the event of a no deal. /End.
Postscript - yes, Countries do know that protectionism is bad overall and are working to lower tariffs. On the whole, tariffs have been dropping for years. But countries do it slowly and carefully to their maximum advantage. Not in a blaze of blind ideology/brexit induced panic.
