European Free Trade Area - Explaining Brexit

With the UK about to leave the EU many options lie in front of Britain. One choice is to stay in the European Free Trade Area. Doing this means Britain can continue to trade with the EU without having to follow quite a many rules. However, is this really the best option for the UK?

[olivianjoroge]

Thanks for explaining the difference between the FTA and the customs union but could you also explain the differences between the single market and the customs union, the FTA and the single market and which of those options would the best financially for the UK

[mikerbwind]

All of these videos explaining the Customs Union, Free Trade Area, Single Market, focus on ONE WAY TRADE. That is, they are all explained from the perspective of UK export to the EU. They fail to also state that any imposition of tariffs, quotas, and administrative overhead equally applies to EU exporters to the of course the EU exports more to the UK than the UK exports to the EU. The videos also gloss over the fact that the mechanisms created by the EU are all designed to create a protected zone which flies in the face of the optimum trading model as agreed by most economists and indeed the that is tariff free trade. The imposition of tariffs serve only to increase costs for consumers and provide no long term benefit to producers. You might also make the point that none of the so called options provides for tariff trade since they all involve paying a fee for the privelage fee far in excess of the net cost of trading under WTO tariffs. Finally, the entire argument about how competitive UK exports to the EU might be if tariffs are imposed ignores entirely the fact that by leaving the EU the UK unshackles itself from imposed tariffed trade relations with the rest of the world. UK exporters therefore have many alternative an option of course for EU exporters to the UK who will see a reduction in demand from UK consumers as their exports become increasingly uncompetitive compared to products the UK can source from elsewhere in the world.
Overall the EU is a dinosaur. It is a global market and the EU protected zone will only serve to further destroy those industries in Europe increasingly unable to compete on the global stage.

[sgill]

Free trade is the best route, like how Canada and US have a free trade agreement. And Canada and EU have a FTA. Which is called the Canada plus plus deal in Brexit.

[johnybravo]

In a FTA members are allowed to set their own tariffs for external countries. In CU members must have same tariffs for external countries. Majority of European countries are both FTA and CU members, so which one they follow?

[ChemistryAtomistic]

Here in Brazil, we are so exacting for a big deal with UK! Let’s become even a biggest partners. I really think that a deal with Mercosur is also available for UK

[jhnc]

Switzerland has to accept freedom of movement and everything in the single market virtually

[marccawood]

I know for a fact that Switzerland DOES place quotas on goods from EU countries. So not such a „free“ trade area after all.

[danielstephenson]

Do countries in EFTA (non-EU I mean) have to accept Freedom of Movement?

[sleepdeprived_seal]

I was just wondering, why is Luxembourg never marked as a member of the EU? I have watched a few videos and in every one Luxembourg isn't marked as part of the EU?

[farhanurmiah]

hi, i wondering how is it possible for individual counriies of the eu to trade with other non eu countries . is it because they are part of EEA And withiout it they cannot trade with countries freely. same question for the tarrif?

[jdrudolfp]

Quite opposite took place currently due to Brexit. The consequence have to be bear by the small businesses.

[mrwaddahshooter]

In the single market and the free trade area you still have freedom of movement

[VillainessAO]

why did the uk leave the eu in the first place...

[laugesteffensen]

Uk Should join EFTA and after EFTA and VISEGRAD should work together for their independance against the EUssr!

[autoliny]

I enjoy your vids, very educational and I do enjoy them, good work, you've helped me alot in my arguments :) I also enjoy the accent

[quatrecheeze]

This is a really bad explanation with some big factual innaccuracies.

I think you're in many ways conflating EFTA with the EEA. EFTA is an orgnisation which is completely independent of the EU. It's not just a Free Trade Area within the EU.

The UK is not in EFTA, we left EFTA to join the EEC (before it became the EU).

[jordanjonwillett]

Not getting a free trade agreement with EU will hurt the EU as much as It would hurt us, It's been admitted In EU parliament. Quite a bias video, such a shame.