Without the EU Britain's power in the world will be seriously weakened

Below is the text of a letter that I sent to a major "Brexit" newspaper; it was not published of course.

The business affairs of Tata Steel UK demonstrate the weakness of Britain’s economic position when it tries to act alone and not in concert with our European partners. China is dumping cheap steel into world markets and this form of commercial activity could destroy steel production in many countries including our own.

The United States has imposed a tariff on Chinese steel to nip dumping onto the American market in the bud. The EU Commission has proposed that the European Union deploys “Trade Defence Instruments (TDI)” to protect our European steel industry. Britain has blocked this. And, of course, the Commission is powerless to over-rule Britain.

Britain has been trying to attract Chinese investment in infrastructure projects in the UK. Perhaps I am being churlish to suggest that Britain’s arm was twisted to block the EU deployment of a TDI against the dumping of Chinese steel.

Tata has decided to abandon steel production in the UK against a backdrop of competing with cheap Chinese steel imports into the EU. Its only interest, quite rightly, is protecting the investment of its shareholders. No amount of flag waving or making claims that Britain has the “5^th biggest economy in the world” is going to cut any ice. Tata would have been expecting Britain to support European measures to ward off steel dumping.

Tata UK would also have been considering the commercial consequences of Britain’s possible exit from Europe. Would its executives be allowed to travel freely in Europe or would they end up in long queues at airports? Worse still, would an EU free of British intervention impose a TDI on British as well Chinese Steel? Tata UK wants to know what Britain’s plans are if we are to exit the EU. “It will be all right on the night” is not good enough. It is no wonder that Tata Steel is quitting Britain; the politicians advocating departure from the EU have no vision or economic strategy for our future outside of Europe.

There is no doubt that potential buyers will be calculating the profits or losses to be made from buying a UK steel industry which is cut off from major markets in Europe, the US, and China either by tariffs, price competition or the restricted movement of its executives. Will a potential buyer take such an investment risk? I fear for the future of steel production in the UK, and I fear for the future of the thousands of jobs and the hundreds of small businesses that depend upon a solution for steel.

Yes, Britain has got the world’s 5th largest economy with a GDP of around USD 3 trillion dollars pa. The US has a GDP of over USD 17 trillion and China over USD 10 trillion pa. Our economy is dwarfed in comparison. Britain on its own has very little economic power to influence events in its own favour.

  

The EU is the 2nd largest economic block in the world with a GDP of around USD 16 trillion pa. If we vote for Brexit the remaining combined GDP of the European Union will be around USD 13 trillion pa. We will be competing against another massive economy. What hope have we got to negotiate more favourable trading terms with these economic giants than we have got now?

Given the enormity of the opposition, would it not be better to remain in one of the biggest economic clubs and co-operate to protect the commercial interests of all member states of the EU? Every citizen of the UK should carefully consider the economic consequences of Brexit.  Flag waving and exaggerated patriotism will not earn us an international crust of bread.