Tags

 

 

(Ten-minute read)

Politically this might be inconceivable but unlike any other developed nation, the UK has sold off considerable amounts of its major industries and assets to overseas owners.

Most of its power generating companies, its airports and ports, its water companies, many of its rail franchises and its chemical, engineering and electronic companies, its merchant banks, its iconic chocolate company – Cadbury, its heavily subsidised wind farms, a vast amount of expensive housing  and many, many other assets all disappeared into foreign ownership.

No other country in the world allowed this sort of thing to happen.Susan Yung illustration for Foreign Policy

Thanks to Margaret Thatcher, Mr Dump now has his eye on what is left.

Why could this happen?

Because its share of world trade is now barely 2.5%.

Because a country with deep negative net worth is likely to have to tax more heavily in future and run budget surpluses to bring assets back into line with liabilities.

Because once it is out the European Union and in the world of WTO there will be serious problems raising the capital required for investment and pressing needs for large scale investment in their home markets.

Because there were vast sums of money to be made arranging the take-over deals.

Because foreign nations are holding increasing numbers of British pounds and if Britain doesn’t allow those pounds to be spent purchasing British assets, it risks foreigners dumping pound holdings and subsequently risks a devaluation of its currency.

Because any trade deal with the USA will be in fact be a deal of Asset stripping.

Because local governments in the UK have sold off 12,000 public buildings over the past few years.

Because public assets accumulated over many decades, intended to serve the public good, and now generating profit for their new private owners.

Because in a period of austerity, non-profit making services are “just seen as a drain

Because Financial services companies have moved almost £800bn in staff, operations and customer funds to Europe since the Brexit referendum.

Because a major US trade deal would be the single largest way of offsetting some of the lost commerce with the EU after Brexit.

A country should theoretically be able to leave the European Union without wrenching economic dislocation and without doing long-lasting damage to relations with its closest neighbours. And that might still happen.

But it’s increasingly possible that they won’t—largely because Britain continues to demand a privileged relationship with the EU that Brussels will not, and probably cannot, agree to.

A no-deal divorce could also cost the United Kingdom its unity in addition to its economic health. Following a no-deal Brexit, frictionless trade in goods would end overnight.

Mr Dump did not just come for dinner.

The United Kingdom is — in theory at least — set to leave the European Union in October.

For the United States, this rupture presents an unprecedented opportunity to strike a trade deal with its transatlantic partner.

The U.K. is becoming a global minnow detaching its self from the E.U. bloc, risking getting picked off by an American superpower that is uninterested in bilateral wins, only intent on competitive nationalism and putting “America first.”

There is one thing for certain a phenomenal trade deal it will be.

Take Back Control’?

Brexit Is Tearing Britain Apart.

Trade deals are often years in the making but they only take a referendum or

a tipping point in the next twelve year by climate change to

tare apart.

Any deal no matter what the assurances are always time-limited, and when trading conditions worsen and hard choices have to be made, international companies nearly always give preference to their home markets.

Special Relationship.

America first” doctrine seen in other trade negotiations around the world should be a signal that the U.K. deal would be hopelessly lopsided.

By all means, become the 51 state but any dispassionate assessment of Mr Dump record over the last three years suggests you should avoid him at all costs.

All human comments appreciated. All like clicks and abuse chucked in the bin.

 

Advertisements