+UPDATE+
UK civil servants have been told to “workshop a trade war with EU” as the UK govt now believes the current trade deal agreed with the EU is so bad that a trade war might not be as costly in comparison.
UK civil servants have been told to “workshop a trade war with EU” as the UK govt now believes the current trade deal agreed with the EU is so bad that a trade war might not be as costly in comparison.
In essence the implication is that the trade deal negotiated by this govt is so bad that the additional costs of a trade war might be bearable in the short term in order to achieve the govt’s goals.
There’s also been talk that the EU if forced to retaliate would likely choose “iconic industries” which would not affect local EU supply chains & where local substitutes exit - such as 🇬🇧 whisky or salmon.
However while true that short term the additional costs might be bearable this presupposes 2 things:
1. The trade war is short
2. The govt can successfully use the trade war to achieve its goals
Neither seem a given.
1. The trade war is short
2. The govt can successfully use the trade war to achieve its goals
Neither seem a given.
From a personal perspective I never really believed UK would take this step however it should be noted that the Conservative party conference is over so it can’t really be blamed on that.
There’s also a point where UK govt may have politically painted itself into a corner.
There’s also a point where UK govt may have politically painted itself into a corner.
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