Three months after the EU referendum we are having the sort of detailed debate we should have had three months before the referendum. It comes as no surprise that Nissan’s continued investment in the UK is at jeopardy. Let’s look at the numbers.
There are 1.23 million motor cars made in the UK every year and 58% of them are exported to the EU. That’s old hat but what is less well known is that, depending on the manufacturer, between 20 and 50 percent of the components of these motors are imported from EU countries. You don’t need the brains of an Archbishop to see that if the UK were to leave the single market car manufacturers would be hit by tariffs on these components and then again when they sold the cars. It would be a matter of some urgency for them to re-locate within the EU. They contribute 7% of the UK’s GDP.
In decades to come we may weaken our links with the EU but for now we need to remain in the Single Market. In practice this means leaving the EU and staying a member of the European Economic Area (EEA). The Prime Minister is paving the way for this by enshrining EU law into British law. This pathway will not be as simple as I make out but I think it will be achievable in a two year period which is essential if our economy is not to be annihilated. If you’d like to be well-informed on the nitty-gritty I commend Richard North’s daily blog, EU Referendum.
If you don’t want the nitty-gritty but have persevered here’s what I saw in the food market in Lyon this morning. Out of shot is Norwegian smoked salmon, undoubtedly farmed, at 62 Euros/kg. Norway belongs to the EEA and apparently successfully competes with Scotland and Ireland.
