{"id":80548,"date":"2018-01-04T05:40:59","date_gmt":"2018-01-04T13:40:59","guid":{"rendered":"https:\/\/www.globaltrademag.com\/?p=80548"},"modified":"2018-01-04T05:41:16","modified_gmt":"2018-01-04T13:41:16","slug":"uk-stan-eu-brexit","status":"publish","type":"post","link":"https:\/\/www.globaltrademag.com\/uk-stan-eu-brexit\/","title":{"rendered":"UK: Stand Up to EU On Brexit"},"content":{"rendered":"

EU ministers are still spooked by Brexit<\/a><\/span> and what it all will mean. Expect them to huff and puff and threaten to blow Britain\u2019s economy down, especially as negotiations continue to stall over the terms they had originally mandated. For its part, Britain will go deep into its playbook to negotiate its own version of what a favorable outcome looks like. And they know how to play the game. Keep in mind that for hundreds of years\u2014right up until the beginning of the last century\u2014England ruled the world\u2019s economy. Trump may have written the book The Art of the Deal, but for the British, it’s in their DNA. The UK must remember it holds more cards than it may think it does. Here\u2019s why: Together with the U.S., they liberated Europe from the Nazis.<\/p>\n

In the end, the Germans won\u2019t press them over Brexit because they are still deeply embarrassed by their actions in WWII; and the rest of Europe\u2014including France, Belgium, Italy and the Netherlands\u2014still owe Britain dearly for coming to their rescue. The UK would do well to remind them of that fact. Here in essence is all they need to say: \u201cLook, we tried the EU and it wasn\u2019t for us. We\u2019re fine if you want to keep it going and if so, then enter into a free trade agreement between the EU and the UK. But don\u2019t try to penalize us in any way because you owe your very existence to us, and we\u2019re calling in that card. End of story. What the UK needs is a strong, Churchill or Thatcher-like leader to stand up and say it.<\/p>\n

Never mind concerns over the TPP<\/a><\/span>, NAFTA, or Brexit. The world economy is picking up steam, and it\u2019s only the beginning. We are heading into a 10-year\u2014or longer\u2014cycle of global growth the likes of which the world has never seen. Exports are going to accelerate as 2018 unfolds and will continue to grow well into the 20s, as in the 2020s. Sometime before next June, the U.S. economy will break into four-percent annual growth. As for the stock market, earnings will catch up to PE multiples, which will continue the rally well into the next few years. If you’re a manufacturer, now is the time to be expanding your global footprint. That means exploratory trips to attend more international trade shows and sign more international distributors. And if you\u2019re a 3PL or carrier, you need to step up your efforts to win more market share. There are fortunes to be made and they will be, either by you or your competitors. Get cracking.<\/p>\n

It\u2019s no surprise to global traders that components for flat screens are made in Asian countries, shipped to the ports of Los Angeles and Long Beach and then trucked to Mexico for assembly duty free and then re-exported back to the U.S. duty free. It\u2019s been said that the U.S. can\u2019t compete with low cost Mexican labor. Au contraire. We have plenty of cheap, readily available skilled and unskilled labor available right now in the form of 2 million inmates that populate U.S. prisons. That\u2019s a gigantic, untapped labor pool. The Department of Labor should be leading the cause to have private industries open up secured assembly plants adjacent to prisons and allow inmates the ability to learn a skill and earn some money on the side that they can either send to their dependents or keep in a trust account to build a nest egg for when they are released. As the saying goes, \u201cIdle hands are the Devil\u2019s workshop.\u201d Why not rehabilitate prisoners by giving them work to occupy their days? Giving them a job to do and allowing them to produce products with their hands can only help ease their transition back into society upon their release. It would even make social and economic sense to allow tax credits for companies that build manufacturing or assembly facilities adjacent to prisons. Obama would have thought of 20 reasons why this couldn\u2019t be done, chief among them pressure from worker unions who may view prison labor as competition or from bleeding heart libs who somehow would mistake this as exploiting the inmates. Preposterous. Let\u2019s give them jobs and teach them skill sets they can take with them when they are released. And give them an opportunity to earn \u201cgood conduct and\/or product\u201d awards to make them even more marketable. As for pay? Don\u2019t regulate it. Let the market determine wages, which will vary state to state. Whatever wages are paid will go a long way for them buying shoes, clothes or school supplies for their family back home and give U.S. industry a competitive advantage over foreign wages.<\/p>\n

So, the dinner conversation went something like this …<\/p>\n

SAYS HIM: I think it\u2019s plain wrong that the Chinese can copy intellectual property<\/span><\/a>\u00a0or re-engineer a product and violate patents.<\/p>\n

SAYS THE OTHER GUY: Yes, but they don\u2019t see it that way. To the Chinese or the Japanese for that matter, once you put a product out on the market for everyone to see and use, then it becomes fair game to copy. That\u2019s their business culture. It\u2019s not our business culture but those are their playground rules.<\/p>\n

SAYS HIM: But that\u2019s not right. Don\u2019t they have any moral compass?<\/p>\n

SAYS THE OTHER GUY: Look, when we were at war with Japan and we came across some great new product that they created, do you think we would have any compunction about copying and manufacturing it ourselves?<\/p>\n

SAYS HIM: Well, that\u2019s different. Under your example, we were at war. Different rules apply.<\/p>\n

SAYS THE OTHER GUY: Exactly. But make no mistake, we are at war right now with China and with many other countries throughout the world. Sure, no one is shooting at each other and we can visit each other\u2019s country in a friendly way, but nonetheless, we are at economic war with them so they don\u2019t see it as \u201ccopying.\u201d They see it as fair game, just as we did when the bullets were flying.<\/p>\n

So, I ask you … who\u2019s right and who\u2019s wrong, and why?<\/p>\n","protected":false},"excerpt":{"rendered":"

EU ministers are still spooked by Brexit and what it all will mean. Expect them to huff and puff and… Read More<\/a><\/p>\n","protected":false},"author":104,"featured_media":80549,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","inline_featured_image":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[3987,3854,129],"tags":[],"jetpack_publicize_connections":[],"yoast_head":"\nUK: Stand Up to EU On Brexit - Global Trade Magazine<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.globaltrademag.com\/uk-stan-eu-brexit\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"UK: Stand Up to EU On Brexit\" \/>\n<meta property=\"og:description\" content=\"EU ministers are still spooked by Brexit and what it all will mean. 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