monkeybusiness42: unknownpoliticalobject: This kind of…



This kind of bluntness from a Japanese diplomat is basically unheard of. What on earth has the UK government done to piss them off that much?!!!

Reuters – Japan warns on Brexit: we cannot continue in UK without profit 
Japanese Government – Japan’s Message to the United Kingdom and the European Union (pdf)

It’s not that bad, figuratively speaking.

As soon as UK leaves EU, they would drop regulations, allowing lower wages, lower safety standards, lower living standards – and higher personal taxes. (They are pretty much openly talking about all that – except taxes. But higher taxes is the obvious collateral.)

They would have to – because outside highly-qualified workforce, UK doesn’t have any other advantages.

Thus they would be forced to exploit to the fullest whatever few advantages they have.

Big business would love it. I guarantee it.

Yeah, there are great opportunities for a few selected individuals. But I think the real money will be in selling off services, such as the NHS. If you read the document of the Japanese government, it becomes quickly obvious that lowering wages will not do much good.

The UK wants to build this narrative that it is all about tariffs and trade deals. According to the famous Deloitte study, 7% on parts. While in reality, this is the least of the problems facing manufacturing if they lose single market access.

  • Todays manufacturing lines are depending on just in time supply chains. Having your parts held in costumes for an unpredictable time is much more damaging.
  • And with no Road Haulage license setup by the UK, no transporter will be able to pass the border. So all goods will have to be offloaded at the border and loaded on licensed trucks. Despite the nightmare of this, there is currently no infrastructure on UK soil to deal with this.
  • European type approval (EC) is a real killer. Bad deal means that all manufactures will get their equipment tested in the EU. No deal might very well result in having to pay for certification and testing in every country. You want to sell a UK built car to Germany, you need to get DIN, Sweden? Well, you better pass Swedish crash tests, etc. You know, like in the old days. Aston Martin already said that they couldn’t continue to operate in such scenario.
  • If the UK decides to hand out huge subsidies and slash labour and environmental protection laws, this might be seen as “unfair competition” and in violation of WTO anti dumping rules. If a member complains, this can result in hefty one sided penalties against the UK.
  • … and so on, and on, and on.

  • I could continue, but I think you get the picture.