Easy: Dukey is a nutter. WTO rules don't mean you have to follow the base level percentage tariff and allow for any reciprocating deal to be struck, the easiest of which will be a zero tariff deal on vehicles with the EU - please don't ask why that would not be forthcoming Five principles are of particular importance in understanding both the pre-1994 GATT and the WTO: Non-discrimination. It has two major components: the most favoured nation (MFN) rule, and the national treatment policy. ... Reciprocity. ... Binding and enforceable commitments. ... Transparency. ... Safety values.
Indeed Britain can set a zero tariff on vehicles but that might not be great for British business . Under WTO rules that would apply then to vehicles from anywhere and not just the EU. Imagine BMW, Nissan, Toyota, JLR looking at it and thinking that if they can export vehicles to the UK from anywhere in the world with zero tariffs, why would they need a factory in the UK?
Have you just admitted by leaving the eu that we in the U.K. would get cheaper vehicles? This would make this earlier claim of yours, incorrect. So which one is it? Your tying yourself up in half truths and incorrect assumptions, as usual.
In a No Deal Brexit scenario, the question is by how much the value of the pound sterling would drop. Only 10% is pretty optimistic. My estimate is more like 20%. This means all imports getting dearer, not just Ducatis, and that is quite apart from the effects of tariffs if any.
The strength or weakness of the pound is based on how the markets see the UK economy and it’s future and it’s ability to repay its debt. It’s nowt to do with the EU.
Strength or weakness means in comparison to the Euro and the Dollar, so "nowt to do with the EU" does not fit. At the moment the expected growth rate for the UK economy is the lowest in the EU, and the lowest in the G8 - but that is based on estimated chances of no deal 25% / deal 75%. If it actually turns out to be no deal, UK growth will be even lower, or negative. For a currency to lose a chunk of its value always has both drawbacks and advantages, but mainly drawbacks. And when a serious devaluation is in prospect, someone is sure to pop up and mention (only) the advantages. Rather touching, really.
