Why the UK Can't Adopt a Canada-style Brexiteer Deal

The question of whether the UK can replicate the trade agreements of other countries, such as Canada and Japan, following its exit from the European Union (EU), is complex. This article explores why the UK cannot simply adopt a Canada-style deal and examines the unique factors that make such a comparison challenging.

Understanding the Canadian and Japanese Trade Agreements

Firstly, it's important to understand that both Canada and Japan are not members of the EU. They never have been, and therefore, their trade agreements with the EU are inherently different from those that the UK is seeking to negotiate.

One might think that a Canada-style deal would be a straightforward solution for the UK. However, this approach would be less beneficial to the UK economy than to the Canadian economy. This is primarily due to the inherent differences in the economic structures of the two countries.

The Difference Between UK and Canadian Economies

The Canadian economy is largely based on the production and trade of goods and natural resources. In contrast, the UK economy is predominantly service-based. The Comprehensive Economic and Trade Agreement (CETA) between Canada and the EU ensures tariff-free trade for goods but includes limited provisions for services. For a service-based economy like the UK, this agreement would provide little benefit.

Some argue that the UK has taken back its sovereignty and regained control of its destiny. While this is true, the nature of this control comes with significant challenges. Unlike Canada, the UK has a large land border with the EU, specifically between Northern Ireland (part of the UK) and the Republic of Ireland (part of the EU). This shared border presents unique logistical and regulatory challenges that require careful negotiation.

Unique Challenges for the UK

Beyond the economic structure difference, the UK faces several unique challenges that are exacerbated by its land border with the EU. Unlike other countries that do not share a border with the EU, the UK's border with Ireland is critical for trade and movement.

Security and Trade Concerns

The potential for smuggling and the disruption of trade flows at the UK-Ireland border are significant concerns. If the UK hardcore its border, it could lead to a smuggling haven, similar to what happened during the Prohibition era in the United States. Smugglers could exploit the border, much like they did then by converting legal products into contraband.

Lack of Direct Ecosystem Dependency

Neither Canada nor Japan shares a land border with the EU that could become a zone of conflict. Their integration with the EU is less comprehensive, and a delay at any border would have less impact on their industries. The UK, however, cannot afford such disruptions due to its interwoven economic relationships.

Conclusion

In conclusion, while the idea of replicating a Canada or Japan-style trade deal is intriguing, it overlooks the unique challenges and differences that the UK faces. The UK's service-based economy and the shared border with the EU make such an agreement less feasible. Understanding these factors is crucial for effective UK trade negotiations in the post-Brexit era.

Keywords

Brexit, Canada-style deal, Japan-style deal, UK-economy