On UK trade arrangements after Brexit, we need more clarity from the Govt. on SERVICES, in which UK is leader (both financial & non-financial services). Chequers plan focuses on goods #R4Today@MishalHusainBBC 1/5
EU accounts for more than 35% of UK's services exports (> share exported to US). This vastly exceeds the shares of the smaller economies (Oz etc.) with which UK is seeking post-Brexit trade deals #R4Today 2/5
The majority of the UK's services exports are in non-financial services (approx. 70%+). That's legal services, media, architecture, tech etc which provide good & mostly well-paid jobs. These services exports are growing (c. @ONS) #R4Today 3/5
UK runs consistent trade surpluses in non-financial services, inc. many services traded with the EU. Yet, Govt. "ambition" is to leave the European single market in services. #R4Today 4/5
And UK financial services, in which UK runs steady trade surpluses with Europe, provides thousands of jobs & much tax revenue. Yet, Govt. intends to leave the single market. #Brexit debate over-focuses on goods & not enough on Brexit's harm to trade/jobs in SERVICES #R4Today 5/5
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Services: 80% of UK economy (architecture, management consulting, legal, creative etc) & big services surplus UK runs with RoW & EU. So why does Govt want to damage economy in #Brexit plan being discussed by cabinet today (focusing on goods only?) ft.com/content/2ce78f… via @FT
And anyway services get bundled in today's global value chains for high-value high-tech goods (c. Aircraft engines & their maintenance) which is what UK government is supposed to be promoting via its (mysterious) industrial policy announced back in 2016.
If you wanted a better trade & industrial policy for UK (which is desirable to create high-paying jobs via higher productivity) you wouldn't put it together in the way that #Brexit is taking us (raising barriers to trading with UK's big EU markets).
Two years on from #Brexit referendum vote, UK growth has slumped. Lowest of any G7 country. Lower than Eurozone. Likely to fall further (c. Airbus). But hey, no worries, it's all #ProjectFear say the #Brexiteers (graphic @WSJ)
Still, young Brits can always pick fruit - rather than look forward to careers in high-tech industries like Airbus. Well done #Brexiteers (but hey, no worries it's all #ProjectFear isn't it?)
The Brexiteers are correct: if UK doesn't leave the customs union - enabling it to make its own trade deals - then there is no real #Brexit
(Trouble is: leaving CU will damage UK prosperity, jobs & Ireland. Is this the "will of the people"?).
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