Two Economic Lessons

From today’s Open Europe news summary:

In a new report released today Business for Britain calls for UK firms which do not export to the EU to be exempt from EU regulation as part of a renegotiation over the UK’s membership of the EU. Open Europe research: Regulation Open Europe research: Trade Mail Guardian Sun

Of course, if Britain leaves the EU its businesses that do not export to the EU would not be subject to EU regulations anyway.  Those UK businesses that did want to export to the EU could decide for themselves if the cost of compliance was worth the cost.  Then the only real harm would fall on the EU citizens who either were denied British products that they would otherwise have purchased or were required to pay a higher price due to the increased cost of regulatory compliance.   There are two economic laws that emerge from this small report.  One, there is nothing that a trading bloc can offer that free trade does not already provide.  Two, the cost of regulation always falls on a country’s own citizens and not on those who wish to sell to that country.  Patrick Barron

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