We can all see the way the EU is now in a panicking due to the U.K. having the upper hand on various fronts. The U.K. has rich fisheries, world-class financial system, the world’s best security intelligence Services just to name a few and it seems that those things are on the EUs radar.
One thing is for sure you don’t read anywhere of the real reason why the EU is in such a panic and are so laser focused on locking the U.K. into the EU system. One of the reasons the EU loved the U.K. was because of the massive contributions we the U.K. put into the EU budget but that’s not the full reason why…
Last night we decided to search for trade figures with the top countries the EU do business with. Below is a photo of the countries the EU trade with including showing the U.K. now as a third country as we are out for the EU..
As we can see at first glance, you notice that the U.K. is the third highest trading nation with the EU. But when you put the figures into a world event context the picture becomes clear.
You can see the U.K. has as a €124 billion Euro Trade deficit with the EU along with the USA on €152 billion Euro trade deficits. Now when you look at these figures and put them into a world event arena, you’ll notice a much bigger picture emerges.
We know that president Trump is Renegotiating the EU trade deal to claw back the €152 billion imbalance and with this the U.K. are going to do the same as it’s a strength the U.K. has in these Coming negotiations.
Now if the USA, UK start to erode at that cushty joint deficit, the EU will not be able to make money from anywhere else. As you can see the EU only make money on the imbalance with the USA, UK and Switzerland.
With the U.K. leaving the single market and customs union on the 31st December 2020, the time is of the essence to get a trade deal with the U.K. What we do know is that if we leave the bloc in its entirety with out a deal tariffs will go up, which would seriously cripple the EU as we would search elsewhere for cheaper goods.
One thing we do know is that the real reason the EU do not want the U.K. to be out of its structures is because the trade deficit with the EU is due to the restraint on our buying power to buy tariff-free goods outside the EU..
Once we are out of the structures of the EU, we become less reliant on buying goods from the EU. We as a nation will be able to buy good elsewhere from around the world cheaper than from the EU which in essence will bring down that massive imbalanced trade deficit and that’s when we the U.K. will become competitive, which is why the EU wants to put a stop to it before it starts.
The tables have turned and we now see the EU terrified of the UKs potential as a global competitive trading nation once again.