We are re-emerging after decades of hibernation as a campaigner for global free trade. And frankly it is not a moment too soon because the argument for this fundamental liberty is now not being made.
The reason we do not seek membership or part membership of the customs union or alignment of any kind, is at least partly that I want this country to be an independent actor and catalyst for free trade across the world.
Boris Johnson 3 February 2020 https://www.spectator.co.uk/article/boris-johnson-britain-must-become-the-superman-of-global-free-trade
The cost of N95 masks went up from $0.38 to $5.75 each (1,513% increase), the cost of vinyl exam gloves went from $0.02 to $0.06 (300% increase); and the cost of isolation gowns went from $0.25 to $5.00 (2000% increase).
Reusable face shields that once went for $0.50 now are $4, up 900%.
https://edition.cnn.com/2020/04/16/politics/ppe-price-costs-rising-economy-personal-protective-equipment/index.html
[registration_form]The key mechanism of a market economy is competition. As a result, it has no system to care for those who are at an inherent competitive disadvantage. That includes the elderly, children, and people with mental or physical disabilities.
https://www.thebalance.com/market-economy-characteristics-examples-pros-cons-3305586
Very good, Mark. Interesting that you quote from Johnson’s 3 Feb speech which has been more widely quoted recently in the context of the government’s initial (‘science led’, of course, ‘science led’) approach to coronavirus:
”And in that context, we are starting to hear some bizarre autarkic rhetoric, when barriers are going up, and when there is a risk that new diseases such as coronavirus will trigger a panic and a desire for market segregation that go beyond what is medically rational to the point of doing real and unnecessary economic damage, then at that moment humanity needs some government somewhere that is willing at least to make the case powerfully for freedom of exchange, some country ready to take off its Clark Kent spectacles and leap into the phone booth and emerge with its cloak flowing as the supercharged champion, of the right of the populations of the earth to buy and sell freely among each other.
And here in Greenwich in the first week of February 2020, I can tell you in all humility that the UK is ready for that role.”
Oh dear.
It’s worth reading in full, a typical Johnsonian piece with more than it’s share of ‘bizarre rhetoric’, lots of nice turns of phrase and lightly-worn learning, nominally addressing ‘our friends’ in the EU, but actually solely for home consumption, simultaneously over-blown and under-done where the purple prose leads to glorious mismatches of ambition:
“We are ready for the great multi-dimensional game of chess in which we engage in more than one negotiation at once and we are limbering up to use nerves and muscles and instincts that this country has not had to use for half a century.
Secretary of State Liz Truss tells me she has the teams in place:”
That’s the Liz Truss scandalised by the import of cheese from France, then.
Or this:
“We have the opportunity, we have the newly recaptured powers, we know where we want to go, and that is out into the world.
And today in Geneva as our ambassador Julian Braithwaite moves seats in the WTO and takes back control of our tariff schedules”
But a more serious criticism is that the speech ignores the real dilemmas over how nations trade freely with other nations if there are no globally recognised agreements and standards to ensure a level playing field. If there is a ‘right of the populations of the earth to buy and sell freely among each other’ (is there really such a right?) then how do you balance that with the obligation on the ‘populations of the earth’ not to harm the planet (in terms of global warming and biodiversity loss) in the production of those goods? The EU, apparently, is simply to take it on trust that we won’t be undercutting them.
Anyway – good to learn from the environmental section of the speech that ‘we are protecting elephants’ if not harriers.
A couple of months ago there was a TV programme on child labour in coffee plantations in Guatemala. Children were working on farms from which Starbucks buy coffee. Starbucks, of course, has high standards – and inspection procedures that include telling growers when they’ll be inspecting. Chidren were working because adults in full time employment couldn’t earn enough to feed their families. So Starbucks will be outraged and sack a coupke od suppliers in a blaze of defensive PR. But what really imressed me was that out of a £2.50 cup of Starbucks the company makes a reasonable 25p profit – but what does the farmer make ? Apparently just 1 penny. Were it just 2 pennies the kids wouldn’t have to work. But coffee, the second most traded commodity after oil, is grown by thousands of small producers in some of the worldspoorest countries – and sell to a small number of huge combines who easily ensure there is always oversupply. Free trade it may be, a functioning market it is not – and much the same applies to UK farmers and the supermarket buyers.
I imagine picking coffee is quite nice compared to mining rare metal ores by hand. Just for our “devices”. Yes I do have a mobile phone and computers. I knew when I saw my first fax that it wouldn’t end well.