So we have decided on leaving the EU, the next step is that the government will invoke article 50 of the treaty so that negotiations will take place.
There is so many areas to cover and I do not wish to try and deal with all, just the one that I think I could make my opinion on – trade.
The 1st deal should be made with the EU – the germans, french, italians and every other of the 26 countries want to deal with the UK as we are a large proportion of their individual exporting. My deal would allow any member of the EU to sell to UK with no tariffs, in return they will buy from any UK company tariff free. This will encourage the smaller members as this will help grow their economy.
Secondly, we can set a simple trade deal with other countries outside the EU, which gives them a market of 60 million in the UK alone and potential 500 million across the EU. This can happen by a simple rule;
You will be allowed to trade to UK from any country, tariff free, but that company has to set up a UK hub/distribution/manufacturing company, then trade can be to the UK company at a realistic wholesale market price and sold on. This eliminates any undercutting of products/services to avoid paying tax. Setting up a company in the UK will employ UK staff therefore putting money into UK economy.
The corporation tax rate will be reduced for companies set up this way, suggesting a 8-10% tax rate on profits. If a company is knowing trying to avoid tax then they will lose the UK company and not allowed to trade.
As they have a UK company this allows free trade to the EU and a potential of 500 million customers, cutting the need for a long drawn trade deal with the EU.
The EU will come back with a migration clause which we will address by the many companies that are set up and require staffing, this level of migration can be controlled by levels of 50-80,000 per year from global migration.
I do not have all the details that need to be thrashed out but i’m sure that the experts can get a great deal for all.
Any feedback would be great as I enjoy debate.