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Posted by / 04-Jan-2018 20:10

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It is not complete – there are restrictions that prevent, say, a French architect from easily practicing in Germany.

But in financial services, telecoms and data, aviation, accounting, pensions and insurance – services that are easily traded – the EU has created common minimum standards and harmonised regulations – and this has prevented national governments from favouring their own companies.

Now that the Brexit talks will move on to trade, Britain will have to choose.

It can maintain EU rules and stay in the customs union, minimising economic costs.

But bilateral agreements are highly unlikely to offset the losses from foregone trade, investment and migration with the EU.

Britain’s economy is already very open, so it can’t offer much in return for other countries agreeing to open their markets.

The UK can try to make up for lost trade with Europe, either through a series of bilateral trade agreements, or unilateral free trade.Britain’s entry to the European Economic Community (EEC) sharply opened the economy to trade: trade as a proportion of GDP jumped from 40 per cent in 1972 to 57 per cent in 1974.From the early 1980s, the UK progressively relaxed restrictions on foreign ownership of business and property.Yet the alternative, unilateral free trade, is not negotiable with the British electorate.By eliminating all tariffs and deregulating its economy even further, the UK would offset some of the productivity losses from hard Brexit.

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Foreign competition and technological progress resulted in steadily falling employment in manufacturing and heavy industry.