It comes up time and time again “no one trades on WTO”, yet with a modicome of research you will see there are many countries that trade with the UK, EU on WTO rules including the USA.
It is not our goal to remain on WTO, of course we shoukd aim for an Free Trade Agreement. No country has a bigger incentive for an FTA than Germany.
CET Is Our Problem – World Trade Organisation Is Perfectly Acceptable.
Critics have painted the WTO option as ‘stepping into the unknown’. Yet the UK currently trades with 111 countries around the world under WTO rules, including China (and Hong Kong), India, Russia, Brazil, Indonesia, Singapore, (until recently Canada) and the United States. Moreover, since the formation of the Single Market in 1993, the growth rate of UK exports to these ‘WTO Only’ countries has been four times faster than the growth of UK exports to the EU. Meanwhile, over this same period, the growth rate of exports from the 14 top ‘WTO Only’ countries to the EU has been 27% higher than exports to the EU from the UK. Of course, this reflects the faster growth of these countries rather than the inherent superiority of a ‘WTO only’ model. But it does at least show that ‘the clutches’ are not at all clutch-like.
Why we shouldn’t fear the World Trade Organisation.
The UK currently today trades with 111 countries throughout the world on WTO rules. The growth rate to these countries has been 4 times faster than our growth in trade with the EU. These are countries that include China (and Hong Kong), India, Russia, Brazil, Indonesia, Singapore. Until recently Canada and the United States.
If, you take the top 14 countries their growth in exports to the EU has been 27% higher than the UK’s growth to the EU.
So you see we have nothing to fear even after all the obfuscation to damage Brexit from the remainers.