Economists suggest that if Government can hold off import tariffs in the U.K after Brexit, shoppers would benefit from cheaper food and other goods, apart from the country getting a four percent boost for its economy. The economists, led by Professor Patrick Minford, a former adviser to Margaret Thatcher, blamed Chancellor Philip Hammond of “economic illiteracy” at the launch of Economists for Free Trade in Westminster.
The group rejected trade tariffs imposed on imports by the Government saying that it would do no good for free trade with the rest of the world. Professor Minford urged Mr Hammond to review his decision. “Trading as a full member of the World Trade Organization outside the Single Market can offer the UK considerable economic benefits,” he said.
Mr Hammond previously said that unilateral free trade would damage the country’s economy and could increase unemployment. Prof Minford lashed out at this remark saying: “This is just economic illiteracy.” He wants the UK government to avoid drastic measures even if EU tries to impose tariffs on goods and services. The “tit for tat” measures will not do well for the economy, he said.
Prof Minford also warned that if the Government impose tariffs on EU goods and service it would eventually wipe out eight percent of the country GDP. “Embracing global free trade, even if the EU does not reciprocate, will mean the UK is far better off compared to the status quo,” he added.