What WBA advises:Ok some Leavers say we don't know what will happen until we leave,but we can predict some outcomes based upon the info government is telling us.
Take the small bicycle manufacturer Brompton,a business that I am sure many of us are proud of,if I was the MD of Brompton I would be worried...
The current situation is that Brompton buys product from various countries but,I am sure,is careful to ensure enough manufacturing and assembling cost for it to be deemed an EU made product and thus enjoy low import tariff duty on the parts it has to import. It can sell to all the 27 EU countries tariff free and use the trade deals that the EU have negotiated with 52 non EU countries,it is a strong export company that is protected by the EU against 'dumping' from Asian suppliers (China).
Under the deal that Davis and Fox propose we are going to have a free trade deal with China and hard Brexit with the EU. If that happens then the anti-dumping tariff of 68% from China to the UK will be eliminated....Brompton will have to fight against volume/low cost suppliers such as Dahon,who can produce at much lower cost than Brompton,it would be a David and Goliath struggle.
The U.K. home market will be very competitive,a nice folder maybe less than £150.00, good for consumers not good for a UK bike manufacturer.
If we go for hard Brexit,May and Davis preferred option,the EU would treat the UK as a satellite of China,bikes shipped from the UK to EU would be subject to 68% anti dumping duty. If one of the German bike suppliers were to build Brompton style folders in Germany then Brompton would struggle to compete. Also Brompton would need the UK negotiators to achieve trade deals with the countries that are currently trade deal connected by the EU.
I think Brompton would have no choice but to set up an assembly plant in Europe.
But the likes of Fox and Davis are not businessmen ,I am concerned they don't understand the result of free trade with China and hard Brexit with the EU.
KudosDave
December2015
http://www.businesszone.co.uk/deep-dive/growth/brompton-bikes-ceos-advice-on-how-you-can-start-exporting
Last Month
http://www.telegraph.co.uk/business/sme-home/brompton-bikes-boss-says-export-to-success/