Free Trade Area

Nick Moody · 05-01-2005, 06:18 PM

Does UKIP have contacts with other independent minded parties/organisations in the EU, especially Northern European, who may wish to encourage their own country to leave the EU and then form a free trade area with the UK, a bit like the old EFTA. We should also bring in the other English speaking countries, but not the US as I feel that it is too large and would dominate the organisation.

Biscuitman · 05-01-2005, 06:41 PM

We sell more to the States than we do to the EU.

Since we became involved with the EU times have changed and tarriffs are being stripped away all round the world.

i think the max at the moment os 1%.

Out of the EU we will be free to negotiate trading agreements, not having to rely on Brussels doing it for us.

Bear in mind what could happen when its an EU Trade Delegation that goes to China or where ever, flogs em a bit of kit and then allocate it to whichever manufacturer in the EU it choses to... (There'll be a shortage of brown envelopes!".

jbalcock · 05-01-2005, 08:31 PM

Nick Moody - I totally agree with you. The UK should have a free trade area with other countries such as Norway. I especially like your suggestion of bringing in the other English-speaking nations except for the USA. I think a free trade area of the UK, Canada, Australia, New Zealand, the West Indies and Scandinavia would be good. I would vote for that. It should become UKIP policy.

Tom Wilde · 09-01-2005, 04:16 PM

Hi Nick,

In fact EFTA still exists:

http://www.efta.int/

It now consists just of Iceland, Liechtenstein, Norway and Switzerland. I'm sure they'd be delighted to have the UK aboard again once we leave the EU.

Quote from the EFTA website:

Quote:

Iceland, Liechtenstein and Norway entered INTO phpbb_the Agreement on the European Economic Area (EEA) in 1992, which entered INTO phpbb_force in 1994. The current contracting parties are, in addition to the three EFTA states, the European Community and the 25 EC Member States.

This would be the main advantage of EFTA membership for Britain: three EFTA members have a free-trade deal with the whole EU. By joining EFTA and signing up for the EEA package, we can get all the trading advantages of being an EU member without being in the expensive, corrupt and undemocratic EU.

I presume that being in the EEA wouldn't prevent us from also negotiating trade deals with other English-speaking nations, for instance - but somebody should probably check that before we sign up!

Nick Moody · 09-01-2005, 09:36 PM

Tom, thanks for the info on EFTA. Didn't know it was still in existence. Good to see that Iceland and Norway have managed to conserve their fish stocks without the benefit of the glorious CFP, strange that. I see that the Conservatives are belatedly trying to jump on the anti CFP bandwagon. Too late for me. It's ironic that a country (Iceland) that we fought a 'war' with over fishing rights should be able to have a healthy fishing industry but we don't.. Good old Sir Ted!

Julian Morrison · 10-01-2005, 08:00 AM

There's no need for a "free trade area". Instead, unilaterally zero tarriffs to everywhere. The whole "balance of payments" thing is garbage. Every trade benefits both parties!

Marcus Watney · 18-01-2005, 10:16 PM

In response to Tom Wilde's suggestion that we join the EEA via EFTA ... in fact we are already members of the EEA. The EEA consists of Norway, Iceland, Leichtenstein and all EU members (you may remember that at the time of the accession of the East Europeans, there was a flurry of EEA signing going on too, to admit the new members).

This is of more than esoteric interest. Because the EEA treaty to which we are a signatory is quite separate from the EU treaty (ECA 1972), when we leave the EU we will still be members of the EEA and in particular will continue to trade in the Single Market until such time as we choose not to.

PPCs should stress this to voters. Businessmen need reassuring that the day after withdrawal we are not going to find ourselves in some sort of economic limbo. In fact, it will be business as usual. There will be no economic dislocation.

It also needs to be stressed to young voters, who particularly value the EU's freedom to work abroad. The free movement of persons is in fact guaranteed by the Single Market, which means the EEA, so there would be no change upon our leaving the political EU. In theory, the privilege would be lost if we left the EEA for a purer free trade agreement such as EFTA, but in practice such a FTA would certainly contain a reciprocal arrangement for working abroad, probably on a quota basis. Switzerland, the only EFTA member not in the EEA, has negotiated a favourable free trade agreement with the EU which includes provision for Swiss to work in the EU.

Another important campaigning point is that the EU has already negotiated 91 free trade agreements. Brussels is not exactly coy about letting outsiders INTO phpbb_our market! Since the average external tarriff (i.e. duty paid by non-EU members) is a mere 0.5% anyway, there is no economic justification for being inside the EU any more (if there ever was).

Norway, which trades with us in the Single Market under the terms of the EEA while retaining control of its sovereignty, has one of the highest per capita GDPs in Europe, certainly higher than ours.

Readers interested in this subject may like to take a look at my paper on Exit Strategy on the Bruges Group website. You will find it at www.brugesgroup.com via the button labelled Alternatives to the EU.

Tom Wilde · 18-01-2005, 11:13 PM

Hi Marcus,

That's really handy! I didn't realise that we could disengage from the EU without ever leaving the EEA - I thought we'd have to re-negotiate EEA membership afterwards. What you say makes sense, though, and that certainly would make our exit from the EU smoother and simpler than I had thought.

I'll certainly read your paper on this.

Nick Moody · 19-01-2005, 09:57 AM

Hello Marcus,
I too found that interesting and have just added your website to my favourites. More good info for the battle.

C_steam · 19-01-2005, 10:57 AM

Just be a little careful.. The EEA is a subset of the EU and accordingly has to implement some EU legislation.

Quote:

The EEA was maintained because of the wish of the three remaining countries - Norway, Iceland and Liechtenstein - to participate in the Internal Market, while not assuming the full responsibilities of EU membership. The Agreement gives them the right to be consulted by the Commission during the formulation of Community legislation, but not the right to a voice in decision-making, which is reserved exclusively for Member States. All new Community legislation in areas covered by the EEA is integrated INTO phpbb_the Agreement through an EEA Joint Committee decision and subsequently becomes part of the national legislation of the EEA EFTA States.

So clearly this needs more understanding before proclaiming from the doorsteps. Any experts?

See URL http://europa.eu.int/comm/external_relations/eea/

05-01-2005, 06:18 PM	#1 (permalink)
Nick Moody Member Join Date: Jan 2005 Location: North Yorkshire Posts: 100	Free Trade Area Does UKIP have contacts with other independent minded parties/organisations in the EU, especially Northern European, who may wish to encourage their own country to leave the EU and then form a free trade area with the UK, a bit like the old EFTA. We should also bring in the other English speaking countries, but not the US as I feel that it is too large and would dominate the organisation.

05-01-2005, 06:41 PM	#2 (permalink)
Biscuitman Uber Member Join Date: Oct 2004 Location: Reading Posts: 3,486	We sell more to the States than we do to the EU. Since we became involved with the EU times have changed and tarriffs are being stripped away all round the world. i think the max at the moment os 1%. Out of the EU we will be free to negotiate trading agreements, not having to rely on Brussels doing it for us. Bear in mind what could happen when its an EU Trade Delegation that goes to China or where ever, flogs em a bit of kit and then allocate it to whichever manufacturer in the EU it choses to... (There'll be a shortage of brown envelopes!". __________________ IF THE EU WAS THE ANSWER, IT MUST HAVE BEEN A STUPID QUESTION!

18-01-2005, 10:16 PM	#7 (permalink)
Marcus Watney Newbie Join Date: Jan 2005 Location: Oxford Posts: 4	European Economic Area (EEA) In response to Tom Wilde's suggestion that we join the EEA via EFTA ... in fact we are already members of the EEA. The EEA consists of Norway, Iceland, Leichtenstein and all EU members (you may remember that at the time of the accession of the East Europeans, there was a flurry of EEA signing going on too, to admit the new members). This is of more than esoteric interest. Because the EEA treaty to which we are a signatory is quite separate from the EU treaty (ECA 1972), when we leave the EU we will still be members of the EEA and in particular will continue to trade in the Single Market until such time as we choose not to. PPCs should stress this to voters. Businessmen need reassuring that the day after withdrawal we are not going to find ourselves in some sort of economic limbo. In fact, it will be business as usual. There will be no economic dislocation. It also needs to be stressed to young voters, who particularly value the EU's freedom to work abroad. The free movement of persons is in fact guaranteed by the Single Market, which means the EEA, so there would be no change upon our leaving the political EU. In theory, the privilege would be lost if we left the EEA for a purer free trade agreement such as EFTA, but in practice such a FTA would certainly contain a reciprocal arrangement for working abroad, probably on a quota basis. Switzerland, the only EFTA member not in the EEA, has negotiated a favourable free trade agreement with the EU which includes provision for Swiss to work in the EU. Another important campaigning point is that the EU has already negotiated 91 free trade agreements. Brussels is not exactly coy about letting outsiders INTO phpbb_our market! Since the average external tarriff (i.e. duty paid by non-EU members) is a mere 0.5% anyway, there is no economic justification for being inside the EU any more (if there ever was). Norway, which trades with us in the Single Market under the terms of the EEA while retaining control of its sovereignty, has one of the highest per capita GDPs in Europe, certainly higher than ours. Readers interested in this subject may like to take a look at my paper on Exit Strategy on the Bruges Group website. You will find it at www.brugesgroup.com via the button labelled Alternatives to the EU. __________________ \"If the EU applied to join itself, it would be rejected on the ground that it is not democratic enough to be a member.\"

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05-01-2005, 08:31 PM	#3 (permalink)
jbalcock Junior Member Join Date: Dec 2004 Posts: 11	Nick Moody - I totally agree with you. The UK should have a free trade area with other countries such as Norway. I especially like your suggestion of bringing in the other English-speaking nations except for the USA. I think a free trade area of the UK, Canada, Australia, New Zealand, the West Indies and Scandinavia would be good. I would vote for that. It should become UKIP policy.

09-01-2005, 09:36 PM	#5 (permalink)
Nick Moody Member Join Date: Jan 2005 Location: North Yorkshire Posts: 100	Tom, thanks for the info on EFTA. Didn't know it was still in existence. Good to see that Iceland and Norway have managed to conserve their fish stocks without the benefit of the glorious CFP, strange that. I see that the Conservatives are belatedly trying to jump on the anti CFP bandwagon. Too late for me. It's ironic that a country (Iceland) that we fought a 'war' with over fishing rights should be able to have a healthy fishing industry but we don't.. Good old Sir Ted!

10-01-2005, 08:00 AM	#6 (permalink)
Julian Morrison Member Join Date: Dec 2004 Location: Banbury, England Posts: 198	There's no need for a "free trade area". Instead, unilaterally zero tarriffs to everywhere. The whole "balance of payments" thing is garbage. Every trade benefits both parties!

18-01-2005, 11:13 PM	#8 (permalink)
Tom Wilde Moderator Join Date: Sep 2004 Location: London. Posts: 2,891	Hi Marcus, That's really handy! I didn't realise that we could disengage from the EU without ever leaving the EEA - I thought we'd have to re-negotiate EEA membership afterwards. What you say makes sense, though, and that certainly would make our exit from the EU smoother and simpler than I had thought. I'll certainly read your paper on this.

19-01-2005, 09:57 AM	#9 (permalink)
Nick Moody Member Join Date: Jan 2005 Location: North Yorkshire Posts: 100	Hello Marcus, I too found that interesting and have just added your website to my favourites. More good info for the battle.