Macroeconomics: UK economy, IB Economics
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Macroeconomics: UK economy, IB Economics
A brief overview of relevant articles for IB and A-Level all relating to the UK economy
Curated by Graham Watson
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Brexit: figures show huge jump in trade between Northern Ireland and republic | Brexit | The Guardian

Brexit: figures show huge jump in trade between Northern Ireland and republic | Brexit | The Guardian | Macroeconomics: UK economy, IB Economics | Scoop.it
The biggest increase in trade in both directions was in food and live animals, data from the Central Statistics Office shows
Graham Watson's insight:

The effect of Brexit has been to significantly boost cross-border trade between Northern Ireland and the Republic of Ireland. Furthermore, whilst exports from the UK to Ireland have fallen there's been a significant boost to trade flows in the opposite direction. Who would have thought it? 

 

The largest gainers from Brexit haven't been the British.

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Goods shipped directly from Ireland to EU up by 50% in six months | Ireland | The Guardian

Goods shipped directly from Ireland to EU up by 50% in six months | Ireland | The Guardian | Macroeconomics: UK economy, IB Economics | Scoop.it
Exporters move away from traditional Dublin to Britain routes to avoid Brexit red tape
Graham Watson's insight:

One for the costs of Brexit file - one wonders why Irish exporters have decided to move away from getting goods into the EU via Britain, with goods shipped from Eire to the EU up by 50% in 6 months.

 

This Brexit project, ill-conceived and wrong-headed at best, looks like it's going well, lads.

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Exports from Ireland to Great Britain soar in post-Brexit trade imbalance | Brexit | The Guardian

Exports from Ireland to Great Britain soar in post-Brexit trade imbalance | Brexit | The Guardian | Macroeconomics: UK economy, IB Economics | Scoop.it

Republic and other EU exporters benefit from the UK’s phased 12-month transition for border checks

Graham Watson's insight:

One for the costs of Brexit file - it seems as though Ireland and other EU exporters have benefited from the transition period for border checks, and the UK has lost out.

 

Of course, if you believe the rhetoric these short-term losses will be outweighted in the longer-term, although for some, the long-term is just a series of short-term events. 

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Brexit: UK-Ireland lorry traffic at Holyhead port slumps

Brexit: UK-Ireland lorry traffic at Holyhead port slumps | Macroeconomics: UK economy, IB Economics | Scoop.it
Lorry traffic between Holyhead and Dublin is down to about one-third of usual capacity.
Graham Watson's insight:

Let's just leave this here - the pandemic, or, Brexit? You decide...

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Brexit: Government to reveal detailed plan for EU negotiations

Brexit: Government to reveal detailed plan for EU negotiations | Macroeconomics: UK economy, IB Economics | Scoop.it
It includes the legal text of an updated Brexit deal, including suggested "customs clearance zones" in Northern Ireland.
Graham Watson's insight:

If RTE are to be believed it seems that the 'technological' solution to the 'backstop' will be the absence of a hard border but a very, very fuzzy one over 10 miles.

 

Ha ha. We really are kidding ourselves aren't we - as the response of the Irish Deputy Prime Minister suggests. 

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UK will cut most tariffs to zero in event of no-deal Brexit | Politics | The Guardian

UK will cut most tariffs to zero in event of no-deal Brexit | Politics | The Guardian | Macroeconomics: UK economy, IB Economics | Scoop.it
Tariffs to vanish from 87% of imports, excluding some meat, dairy and underwear products
Graham Watson's insight:

The government announced it's temporary no-deal tariff plan - with tariffs vanishing from 87% of all imports - but remaining in place for certain sectors.

 

It's divisive - and immediately raise distributional issues. And then there's Northern Ireland, where the tariffs changes won't apply - which is likely to bring the UK into conflict with the EU. Of course, the imposition of tariffs on this border will have significant consequences for cross-border trade and the Irish economy more generally.

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UK delays Brexit checks on goods entering from Ireland | Business | The Guardian

UK delays Brexit checks on goods entering from Ireland | Business | The Guardian | Macroeconomics: UK economy, IB Economics | Scoop.it
Rules due to come into force on 1 January postponed as act of ‘good faith’, says Brexit minister
Graham Watson's insight:

The UK-EU dispute about the Northern Ireland protocol rumble on, with no end in sight. However, the UK has agreed to delay checks on goods entering Northern Ireland from Eire, in the hope of sustaining negotiations. 

 

Oven-ready deal? Still defrosting, and likely to end up as a horrible mess is nearer the mark in my view. 

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Brexit caused huge drop in Great Britain to Ireland exports in 2021 | Brexit | The Guardian

Brexit caused huge drop in Great Britain to Ireland exports in 2021 | Brexit | The Guardian | Macroeconomics: UK economy, IB Economics | Scoop.it
Irish government figures come days after M&S says it is scrapping 800 lines due to ‘excessive paperwork’
Graham Watson's insight:

More good trade news - the value of UK exports to Ireland has fallen, but Irish exports to the UK have increased largely as a result of the asymmetry in border checks. 

 

UK exports to Eire currently get checked at the Irish border; Irish exports to the UK do not. You simply couldn't script this sort of thing. 

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Scooped by Graham Watson
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Ports feel the chill as trade re-routes around Brexit Britain | Business | The Guardian

Ports feel the chill as trade re-routes around Brexit Britain | Business | The Guardian | Macroeconomics: UK economy, IB Economics | Scoop.it
In Holyhead, traffic has fallen 50% as hauliers stymied by Brexit find their way from Ireland to France without entering the UK
Graham Watson's insight:

I've gone early here, with an Observer piece that notes that there's been a substantial decline in freight passing through some of Britain's ports, notably those that connect with Ireland, such asHolyhead in North Wales. Similarly, Fishguard in South West Wales is also affected as firms look to either bypass the UK entirely or go direct to Northern Ireland via Liverpool or Cairnryan (Stranraer, effectively) to those of you not au fait with Scottish geography. 

 

The next result is putting jobs at risk in these places, and as the local member of the Welsh parliament notes, as many as 1,000 jobs in the area are dependent upon the port. 

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Brexit talks hurtling towards new crisis point, says Irish foreign minister | Politics | The Guardian

Brexit talks hurtling towards new crisis point, says Irish foreign minister | Politics | The Guardian | Macroeconomics: UK economy, IB Economics | Scoop.it
Warning comes as study finds cost of checks on Northern Ireland supermarket deliveries could exceed £100,000 per lorry
Graham Watson's insight:

And lest we forget, the Brexit clock is still ticking - with the Irish foreign minister suggesting that little progress is being made, not least over the question of the Irish border.

 

This is brought into sharper relief by a study by the Northern Ireland Retail Consortium which suggests that the cost of checks on Northern Ireland supermarket deliveries could exceed £100,000 per lorry. From frictionless trade to, well, quite a lot of friction. 

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Brexit: Two can play that game theory

Brexit: Two can play that game theory | Macroeconomics: UK economy, IB Economics | Scoop.it
The EU holds firm as the prospect of a no-deal Brexit for the UK draws closer.
Graham Watson's insight:

Faisal Islam writes about the current state of the Brexit negotiations, suggesting that there's been a change in the UK position and that this has been recognised by the EU too.

 

An interesting read. 

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