January 28, 2013
TRADE + SOVEREIIGNTY:
Euro and trade will make EU irrelevant : Appeal will diminish amid a eurozone economic union and transatlantic free-trade zone (Wolfgang Münchau)
Then there is pressure from outside the eurozone, from proponents of a transatlantic free-trade area. The idea is not new but there has been some buzz about it recently because the US and EU are both keen on developing the idea.The most important consequence of a free-trade area would not be the abolition of tariffs. These are not very high to begin with. It is that it would allow products regulated in one jurisdiction to be traded freely elsewhere in the zone without further regulatory impediment.Hammering out such a treaty would not be easy. It is not that clear whether the Europeans, for example, would allow the import of genetically modified organisms. But the geostrategic and economic case for a transatlantic single market is overwhelming. At a time when many people are concerned about the decline of the wider North Atlantic region, the two largest economies would come together and create a de facto single economic zone, covering about 50 per cent of global economic output.Even if Britain were outside the EU, it would without a doubt be a member of such a zone. So there can be no question of it being cut off from trade.
Posted by Orrin Judd at January 28, 2013 5:27 AM
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