If we vote for Brexit what happens

Thrugelmir

londonTiger wrote: »

They cannot reclaim any of the VAT that HMRC have levied on the invoice.

There's no VAT on exports. Therefore nothing to reclaim.

HMRC don't levy VAT either, It's the responsibility of the organisation raising a sales invoice to properly account for VAT.

londonTiger

CLAPTON wrote: »

so india and china don't like a 30% duty on their steel so they slap 100% duty on german cars and other EU manufactured products

trade is mutually beneficial (that means to both parties): no reason to expect a world wide trade war because of Ukexit

I was giving hypothetical examples.

If Country B needs copper from Country A desperately then they would not hinder that trade by levying high duties.

If Country A has a struggling cattle market and wants to ward off imported cattle it can impose duties on all imported cattle.

While countries can do deals "we want your copper but we want to export our cattle to you so can you lower duties on our cattle and we'll lower duties on your copper". It's really uncertain and will impact businesses as they dont know what the duty is going to be year to year. It can make or break businesses and a change in duty can wipe out profit margins for a business.

I can't believe you are so strongly against the EU and advocating brexit when you dont understand basic principles of trade. Majority of brexit advocates are probably just like you. Have no idea what we really stand to gain or lose and are just happy to vote exit and then let everyone else pick up the pieces.

CLAPTON

londonTiger wrote: »

I was giving hypothetical examples.

If Country B needs copper from Country A desperately then they would not hinder that trade by levying high duties.

If Country A has a struggling cattle market and wants to ward off imported cattle it can impose duties on all imported cattle.

While countries can do deals "we want your copper but we want your cattle so can you lower duties on our cattle and we'll lower duties on your copper". It's really uncertain and will impact businesses as they dont know what the duty is going to be year to year. It can make or break businesses and a change in duty can wipe out profit margins for a business.

I can't believe you are so strongly against the EU and advocating brexit when you dont understand basic principles of trade. Majority of brexit advocates are probably just like you. Have no idea what we really stand to gain or lose and are just happy to vote exit and then let everyone else pick up the pieces.

I guess your knowledge of how the world trade works equals that of your knowledge of how VAT works.

Generali

mayonnaise wrote: »

Why? It's usually those with a poor grasp of the basic principles of trade and economics who advocate brexit in my experience...

TBH I think a lot of the politicians advocating for a Brexit understand the financial costs full well, they just think that the intangible benefits outweigh the costs.

CLAPTON

mayonnaise wrote: »

Why? It's usually those with a poor grasp of the basic principles of trade and economics who advocate brexit in my experience...

just out of interest as some-one with a good knowledge of trade and economic

do you consider the high EU tariff barriers have
-helped the people of the EU
-helped the poor countries (especially agricultural countries) who have been unable to trade

do you think that lack of trade by those poor countries has in any way contributed to the instability in any of those countries that has fueled the huge migrations?

angrypirate

londonTiger wrote: »

Agreed. The change is effective immediately. There's no such thing as "existing contracts will continue" in this instance.

If a british company agreed to buy 10 tonnes of steel per month from a Germany supplier and we vote to exit the EU on the close of March 31st. From 1st April European supplier will have to charge full EU vat. HMRC may even charge import duties and import VAT on top of that as well. Suddenly you are paying 1.5x for the same stuff overnight.

Really? REALLY? So say the referendum is on the 1st June. Do you honestly expect that if we vote out, we will be longer be in the EU on the 2nd June? News for you - NO. There will be months, if not years of negotiating an exit strategy with the EU that will include trade deals. In fact, dont you think its quite likely we'd be giving an EFTA deal pretty much immediately that would require minimal negotiations?
You know what happens if the EU doesnt give us an agreement - that German steel company looses its contract as the British company would sign a steel supply contract with a much cheaper Chinese supplier thanks to the new trade deal the British government can sign with China.

angrypirate

CLAPTON wrote: »

just out of interest as some-one with a good knowledge of trade and economic

do you consider the high EU tariff barriers have
-helped the people of the EU
-helped the poor countries (especially agricultural countries) who have been unable to trade

do you think that lack of trade by those poor countries has in any way contributed to the instability in any of those countries that has fueled the huge migrations?

The EU has screwed African farmers who cant compete with EU farmers due to the EU farming subsidies and the high trade barriers.

If the EU was a member state, it wouldnt be allow in the EU due to corruption and lack of democratic accountability.

Generali

angrypirate wrote: »

The EU has screwed African farmers who cant compete with EU farmers due to the EU farming subsidies and the high trade barriers.

In Aus you can buy Australian unsubsidised tomatoes put in a can in Australia. They will cost you c.$1.50 a tin.

Alternatively you can buy Italian tomatoes in Italy, put in a tin in Italy and subsidised to the hilt and then dumped on the Australian market. They cost 60c a tin.

mwpt

I've got to say, as someone who most definitely wants the UK to remain in the EU, I am unconvinced by the doom stories of leaving the EU. I think the UK would be ok, after a while. Initially though there would be some chaos. Just my guess, same as anyone else's guess.

CLAPTON

mayonnaise wrote: »

That's why there's something called the 'Generalised Scheme of Preferences' allowing developing countries access to the EU market at vastly reduced or no tariffs.
Or the EBA initiative giving the least developed countries duty free and quota free access.
Google it and learn.
Let's be honest, Clapton. You want brexit because you don't like immigrants. Stop pretending you have a clue about EU trade.

I favour Brexit because I dislike high London/SE houses prices that mean 'ordinary' people can't afford a modest family home: as I believe that price is related to supply and demand I indeed think the 3 million non UK born people in London is a major cause of high house prices.
I also see no benefits whatsoever in increasing population size and the overcrowding of transport and our road system that is clearly associated with it.
I also associate the increase in population with the waiting time to see GP and hospital

if you wish to say that is racism then so beit : it makes all socio-economic arguments redundant.


The generalise scheme of perference is a relative new innovation and doesn't address the general issue of tariff boundaries (and their economic consequences) nor the damage done over the last 50 years to developing countries.

however just stick to the racist bit if it pleases you.