Johnson’s (not so secret) POST-BREXIT plan  – VisualPolitik EN

Brexit is like nuclear power: everyone has
an opinion about it but almost nobody knows how it really works. To many, Brexit means the UK isolating themselves
from the rest of the world. But Brexit supporters think the exact opposite
– that Brexit means globalization and open markets… on steroids. Just check this out. Fears Boris Johnson is planning to turn UK
into ‘Singapore-on-Thames’ after Brexit In 2019, the phrase ´Singapore-on-Thames´
became a sort of mantra for many Brexiteers. As you know, Singapore is one of the main
hubs for international trade. They have free market deals with nearly everyone
and their laws have attracted thousands of companies. According to Boris Johnson, the European Union
is blocking the UK from becoming as free and open as Singapore is. And there is some truth to this. No, I haven’t gone nuts! Think about it for a moment. The EU is the biggest free market area in
the world. Thanks to this, there are 28 countries that
can trade with each other. And yes, it is true that the EU has very few
tariffs when it comes to foreign trade. But it’s also true that, for years, Brussels
has been cheating in the international free trade market. Guerre des frites: EU sues Colombia at WTO
over fries Yes, you head it right… we’re talking
about French fries. Europe has been selling French fries to Colombia
for years. So far, so good. The EU and Colombia have a free trade agreement,
so everybody is happy. So, what’s the problem? The problem comes when Brussels heavily subsidies
European farmers. Thanks to CAP grants, producers can sell under
market price to the Colombians. Add to this the EU food regulations, which
tend to be stricter than elsewhere and you can understand why Colombian farmers can hardly
compete with European ones. Many of you may think that French fries is
a stupid example. But we can find the same issue in a much bigger
industry. The battle between American BOEING and European
AIRBUS follows the same principle. And here we would be talking about something
much more serious than just some chips. US imposes record $7.5 billion tariffs on
European goods In other words, the United Kingdom wants to
stay away from all these trade wars. In order to do that, Johnson’s post-Brexit
plan would be to sign free trade deals with anyone. Deals that would allow the UK to trade with
the whole world without restrictions. All of this sounds beautiful but… there
is another problem here: TIME. Negotiating a trade deal between two countries
can take years. So, the UK will need more than a decade to
see the Singaporean dream come true… if it ever does. And what would happen in the meantime? The UK would have to trade with the world
according to World Trade Organization rules, which are not as convenient. So, if you’re watching this video from Brexitland,
you’d better get ready for lots and lots of tariffs while your government negotiates
something better. Or maybe not? What if there was an easy, quick and handy
solution for all of this? Oh yes! Boris Johnson has a not-so-secret
plan to have free trade without negotiations. I’m talking about this. Boris Johnson Widens Push for Singapore-Style
Free Ports in U.K. Exactly! The so-called ‘supercharged free ports’. These ports would work as islands of free
trade in the middle of the UK. Here is an example. Imagine that we have a Colombian ship full
of potatoes and we want to sell those to the UK. Let’s assume that the tariff for this would
be 30%. But now, imagine that instead of loading your
merch in, say Liverpool, you do it in a supercharged free port in the Port of Tyne, near Newcastle. Initially you pay no tariffs. Very close to the port there is a factory
that can process those potatoes, cut them into chips, freeze them and put them into
bags. And this factory is built on special ‘free
port’ land. So far, you haven’t paid any tariff whatsoever. Besides, the taxes here are very low and there
is freedom of movement. No border control, no customs checks… nothing! Then, once we have the frozen French fries,
we sell them to the UK market. This is when you have to cross the border
that limits the area of the supercharged free port. However, you are now already in the UK when
you have to pay the tariffs. But hey! Unlike raw potatoes, frozen fries just have
a 10% tariff. So now Colombians have paid less tariffs,
you have secured some jobs and you have bypassed lots of trade restrictions. Easy, right? Sounds like a great idea, doesn’t it? Then… why didn’t they do it before? Why does the UK need to be out of the EU to
do this? Today we are going to answer to all of these
questions but, before we do, let’s take a look back at the history. THATCHER’S LEGACY If you ever travel to London, there’s a
place you cannot miss: Canary Wharf. It’s one of the most modern neighbourhoods
in town, with lots of skyscrapers and even a funicular. Canary Wharf is one of the world’s financial
hubs. And this is surprising given that in the 70s,
this area was extremely poor. Back then, this region had a port: the Isle
of Dogs port. And they had a big problem. During the 70s, merchant ships started getting
bigger and bigger. So big that they couldn’t fit into the Isle
of Dogs port. So, year after year, they had less and less
traffic. In the 70s, this area was marginalized. But things changed in 1982. Back then, the British Prime Minister was
the woman you see on the screen: Margaret Thatcher. Thatcher was a big fan of businesses. So, in order to restore this neighbourhood,
she had an idea: she turned it into a so-called ‘enterprise zone’. Basically, this area would have lower taxes
and much more flexible urban laws. Besides, the government would make sure it
was well connected with public transport and roads. All of this was enough to convince lots of
developers to come here and build office buildings and today, Canary Wharf is a skyscraper forest,
makes lots of money and employs thousands of highly skilled workers. In other words: the experience was good. So good that Thatcher repeated it over and
over again. During the 80s, the United Kingdom started
opening more and more enterprise zones with lower taxes. If this wasn’t enough, they also gave licences
to some ports to become free ports, with no tariffs whatsoever. This is how NISSAN opened their Newcastle
factory, near the Port of Tyne, that employs 7000 people. So, what’s the problem? These two great examples I just gave you are
some of the few that really worked out. In most cases, these special economic zones
didn’t generate as much growth as Thatcher thought. According to many studies, 40% of the new
jobs they created were just relocated ones. This means, instead of brand new companies
and brand new jobs being created, businesses from other areas moved into the enterprise
zones. So, the net result was 0. But beyond this, the Government had to spend
lots of money on infrastructure to make the enterprise zones really attractive to businesses. Just to give you an example, Canary Wharf
has its own airport: London Central. So, basically, for each job that was created
with this policy, the Government spent 17,000 pounds. In 2012, the United Kingdom stopped giving
licenses to these zones. No more tax breaks, no more tariff free ports. So now you might wonder… if the idea was
so bad… why do they want to do it again? Why are so excited about it? Let’s have a look at it! HARD BREXIT THERAPY While the UK lost its faith in these special
economic zones, the European Union did the opposite. You might not know but, today, Europe has
more than 80 special economic zones with lower taxes and lower or no tariffs. For example, if your Colombian friends want
to unload their French fries in the Port of Cadiz, in Southern Spain, they would pay no
tariff. They can store those tasty, tasty, fries in
the port for as long as they want. Of course, as soon as they want to sell in
Spanish territory, they cross a beautiful border with some customs checks and they pay
the tariff. But if they just store the fries because,
eventually, they want to send it to, say, Morocco… they pay no tariff whatsoever to
Spain. So now you might wonder… if this is already
happening in Europe… why does Boris Johnson need a Brexit to do it, huh? Well… here you have the reason. The Treaty on the Functioning of the European
Union, passed in 2007, is one of two primary Treaties of the European Union So, what does this treaty say? Among many other things, it says that these
special economic zones can be created for two purposes: one, helping a poor region to
develop or two, boosting a specific type of industry like green energy or something like
that. All of this explains why most of these 80
zones are placed in Eastern Europe. Croatia has 11 free zones while Austria and
the UK have none. And this makes sense because the wealthiest
Croatian region has 11,400 EUR of GDP per capita. Meanwhile, the Newcastle area, one of the
poorest regions in UK, has 35,000 EUR of GDP per capita. I think it’s clear who needs the most help,
right? So… yes and… no. Of course, from an EU perspective, the UK
does not need special economic zones. But if we look at it from a British perspective,
we can see how there are big differences between regions. Western Inner London has a GDP per capita
of 191,000 EUR. So, as you can see, compared with London,
the Northern regions are much poorer. And economics is sometimes a matter of comparison. In fact, these poorer regions are where Brexit
is so popular. And all of this explains why in this area
of the country, this free port idea sounds like heaven to many. Port of Tyne wants “virtual free port” stretching
to Nissan factory (in Newcastle) But the question remains the same. Special economic zones didn’t do marvels
in the 80s… why would they do it now? And this is when we get to the idea of the
supercharged free ports. Basically, in the 80s we had two types of
special economic zones: enterprise zones, with some tax breaks, and free ports, with
no tariffs. Imagine what would happen if we merge these
two into one thing. What do we have? We have a place with freedom of movement,
low taxes, flexible urban regulations and no tariffs. Boom! All of a sudden, we can make the story of
the Colombian French Fry maker possible. They come with their raw ingredient, they
unload it, they process it and then they sell it with lower tariffs. In the meantime, we have created companies,
factories and jobs for lots of people in the poorest areas of the countries. Sounds good? Well… in the North, this sounds really good. ‘Free ports’ plan for North could give
UK £9bn boost According to a consultant named the MACE GROUP,
filling Northern England with these supercharged free ports would create over 150,000 jobs. As you can imagine, the port associations
in the country are enthusiastic about the idea. Conservatives are happy too. And Labour is pretty much divided. On the national level, they say this. Boris Johnson’s ‘free ports’ are for
the super-rich to dodge taxes and launder money Nevertheless, the Northern English Labour
MPs aren’t as clear. Just look at what Mike Hill, an MP from Manchester
says… Mike Hill: For jobs in Northern coastal towns,
create supercharged free ports So now the question is… Are we really talking about the last resort
for post-Brexit UK? Can these free ports really work? So far it looks as though they have more advantages
than disadvantages. But we are not talking about a game changer
at all. Can they create jobs? Of course they can! Definitely, in Newcastle, where the Nissan
factory is based, they could be a great incentive for other car manufacturers to set assembly
plans. They could import the cars piece by piece
and then put them all together in the UK. This could provide some jobs… but not really
highly skilled ones. At the end of the day, assembly is one of
the cheapest parts of the value chain of a product. But anyway, we are just making predictions…
and that’s not our job. So now the question goes to you. Do you think these supercharged free ports
are going to turn the UK into a Singapore-on-Thames? Would this make up for the losses of a Hard
Brexit? Please, leave your answer in the comment section
below. Before finishing this video, I would like
to thank ADRIANOPLE GROUP for helping us with the research. Adrianople Group is a political intelligence
company specialized in special economic zones. They have given us lots of insights and we
want to thank them. This is not a sponsor, just a simple thank
you. Also visit RECONSIDER MEDIA.COM, the podcast
that provided the vocals in this episode that were not mine. Don’t forget that we publish brand new videos
like this one every week so subscribe to VisualPolitik and hit that bell button so you won’t miss
any of our posts. If you liked this video, give us a thumbs
up and, as always, I’ll see you next time.

Author Since: Mar 11, 2019

  1. If Brexit and this plan would be so good for the country they would of left the EU with a hard brexit immediately, because once voted for the government could of taken the UK out instantly. They didn't though and the government report itself shows how negative Brexit is for the country. Let's be honest Boris and the conservatives represent the super rich in the UK, they don't want to pay the new EU taxes for the richest, they want to make the UK into even more of a tax haven than London already is. Do the ordinary people in the UK see any benefit from this? Nope.

  2. If you compare Thatcher's policies in Britain and Norwegian economic policy, you'll see why maybe just cutting taxes forever is a bad idea

  3. If the Columbian want to sale fires, why are they going to process it in the UK; a country with one of the highest paying labour force compared to Eastern European, Asian or Latin American countries.

    This also applies to other products, why would anyone want to pay extra to process/refine their product from raw materials if the Labour cost is so high.

    These factories are either going to highly automated – using robots – or it's going to be a luxury product which requires very highly skilled work force which Germany has more of.

  4. “According to the study’s 40% of the jobs created were just relocated ones” dosnt that still mean they increased jobs by 60% on these new zones? That sounds like an amazing deal to me even if those are the not so good examples

  5. 1) Simon, really!? No-one knows how nuclear power works? You seem to have the same opinion as the remainers of ordinary peoples intelligence!
    2) "to many Brexit means isolating itself from the rest of the world"? I do believe it was quite clearly stated in pro – Brexit campaigning that the idea was to TRADE with the rest of the world!
    3) The mantra " Singapore on Thhhames" was not from the brexiteers but from panicking EU officials.
    couldn't continue watching as you seem so full of contentious "facts"

  6. Well, I don't understand why UK thinks that EU is not going to react with extra taxes on import if UK is trying to high jack of the singular market. I think it is reasonable to expect.

  7. Fuck Brexit. Its breaking international politics on a fucking whim. No guarantees, possibly buying a campaign with poor folks' future

  8. When Brexit is done , remove that word from existing , we ALL in Europe are sick of hearing of it , it's even worse than the word "selfie". It's a sick show , don't care UK conservatives lied to trick Brits to vote "leave". DONE with it !!!!

  9. I think you need to reupload this after some extra editing. There is an abrupt cut at 8:45 and from 10:44 the audio is unsynced. :p
    But interesting video nonetheless!

  10. Lol. Yeah are just spending taxes by loosing money because of no tarrifs and the following competiton to your own potatoe farmers.🤔

  11. I imagine that they will generate a lot of money for the rich, the losses for the working class will be enormous. Those who will gain from this have managed to see this to the very people who will lose out via the media, controlled by the very people who will get even richer. The power of the media is unstoppable. The foolishness of the average British person is now legendary.

  12. To the person who tried to put every genre of music in the edit, well done?! Think you left bag pipe out… (is that a dig at the Scots) other than that…

  13. Ah, good old London Central Airport on the banks of the River Theims. You can fly direct from there to the wonderful city of Kediss in Spain.

  14. @ VisualPolitic EN. A None agreement on trade gets you on the WTO zero point trade. It is called Zero point, because until each country has a trade agreement they cannot impose tariffs. It really is simple.

  15. How many countries who are already aligned in standards and regulations have negotiated trade deals?

    In January 2016, the EU had trade agreements in force with 55 countries whose aggregate GDP was $7.7 trillion…… By way of comparison, the aggregate GDP of all the countries with which Switzerland had agreements in force was $39.8 trillion; Singapore had agreements of $38.7 trillion, Chile agreements of $58.3 trillion and Korea $40.8 trillion….. and when we do eventually get a free trade deal it's a One size fits all trade deal designed to accommodate 28 disparate economies which are far from ideal for Great Britain's services reliant economy.

    The EFTA and Switzerland completed trade deals with Canada and Japan over 10 Years ago!!….. Australia China deal 2014.

    Britain already has a $40 Billion trade surplus with America under WTO rules and a shiny new mutual recognition agreement which allows trade between us to continue ''as is'' when we leave plus 13 trade deals already rolled over.. and we haven't even left yet!

    In short!… the stagnating single market which is outperformed by every comparable economy has been a transparent failure!

    The future is bright… the future is Brexit

  16. The music in this video makes it very hard to take seriously at all. I can’t tell if your taking the piss out of your own opinion or not

  17. People voted for Brexit in 2016, and the mandate has been ignored long enough that now they voted for the guy less likely to Brexit.
    Almost like they had a change of heart.

  18. Sounds like a spivs' charter. How is Boris' Garden Bridge doing these days? And even if it turns out to be a great idea, how long before France and Germany do the same thing, with much greater financial clout?

  19. The nonexistent world leaders want to have more access to Europe and this is the1st step… to overflow Europe with cheap gene manipulated agricultural products from the us and co.

  20. Britain: conquers two thirds of the globe, rapes and pillages for centuries, causes countless wars between tribes, rips countries apart and then complains when a polish worker takes a job picking broccoli at 4am on minimum wage. Cunts the lot of them.

  21. Supercharged free ports make me so excited about Brexit. History is going to be nasty about Brexit just like it is about Thatcher but, like Thatcher, Brexit is going to breathe life into the UK economy.

  22. The US is a hypocrite when it come to subsidies. They have the same with Mexico, but want to force others into not doing it.
    The EU should become a easier freer market, which does by no means have to be a cut in workers rights. There are many good examples within and outside of the EU and those few but good regulations should be installed EU wide. Boosting the EU and finally raising the interest rate again. Stop the negative interests and becoming a leading power.

  23. Just wondering, if that’s the case why did Newcastle Upon Tyne and the surrounding constituencies end up with their labour members winning the vote?

    Surely the prospect of so many jobs would have been a huge selling point for the conservatives when campaigning in the areas

    Picture of how UK constituencies voted 2019

  24. Ask yourself why a box of breakfast cereal manufactured in the US and sold in the UK, costs over two times what it does in the US.

  25. I don't know i'm not an economist, my guess is i'll be just as poor as I've always been regardless of whose in power .

  26. yeah but this is not the 80is..freeports are everywhere, and Ireland, France, Greece etc. can just copy this idea..also once Scotland leaves, who will be interested in england?

  27. What about AUTOMATION?
    This video appears to have overlooked its impact on manufacturing jobs?!
    The assumption is that factories around these free ports will employ workers but what if the production of goods can be automated, at least partially, if not completely? Then fewer jobs than expected will be created, while the extra profits from avoiding tariffs are pocketed by the business owners, increasing inequality further…

  28. What pissed me off the most with the remoaners was how they labelled the Brexiteer's as racists !
    These remoaners wanted to keep Britain white and keep a lock on the door of our commonwealth countries ( all 58 of them ) from coming here to trade and work in preference of the white european nations – Looks racist to me .
    1st thing the government did was open the door and send offers of free work visas to bring in our cousins from around the globe to fill the expected positions left by the fleeing migrants from across europe .

    We already have 58 trade deals just within the commonwealth which has been fenced off from us for too long , now the fence is coming down Britain can start expanding and bringing in cheaper produce / products free from the EU quota system .
    A 3rd world country such as the Philippines sell brand new Toyota 4×4's for £15K while here in the EU they cost £27K after import taxes ?

    India sell new all electric car's and vans for £6k to £11K , but they cost us £15K to £20K after the EU tax grab takes effect .
    The world is a cheaper place outside of the EU …
    Welcome to the world ….

  29. To quote Macron "Please do not fuck us super hard Mr Johnson, we were just kidding back when we screwed you with those negotiations."
    Brussels is shitting itself.

  30. You lead everyone on first then say we dont predict that's for everyone who watches to do so why push this bias narrative like Brexit isn't going to make a difference

  31. This video looks so elites like everyone who don't have jobs just live without it an brexit isn't just about jobs it's about the British parliament have full control of the laws of the country

  32. The EU and the USA have been doing exactly the same helping Airbus and Boeing. The USA has nothing to say against EU and Airbus. Indeed we already have a pending WTO resolution on illegal US government aid to Boeing. The United Kingdom cannot live far from these problems since it is a very important part of Airbus. Most Airbus turbofan engines are made by Rolls Royce. Also, The UK is one of the main partners in this company.

  33. Singapore on They-mes???? Where the [email protected]£& is this mysterious River They-mes the yanks (love 'em) keep talking about?? It's Thames with a hard H or a silent H .. Always has been back through time, Thames, Tames, Tamyse, Tamesis, Tems.. I know there is a town called New London in USA with a River They-mes running through it, as I was impolitely told by a resident was the correct pronunciation and that we called it Tames due to our Germanic influence from the time of the Hanoverian Kings. As I told her there are 2 sorts of English, The Queen's English and everything else that is wrong…

  34. Did anyone else notice that the video, while he was talking about potato processing, was a bread factory? I thought that was funny. Lots of good info I was not aware of about or had not considered about Brexit.

  35. No matter the outcome the world will prob learn a lot about economics and other stuff. In the end the best way to find out which system/policies are the best is to just try them

  36. Love your YouTube channel.. BUT Nisan is not in Newcastle it’s in Sunderland “another city” the city where I’m from lol

  37. As an American. You're going to get fucked over trade wise. You will lose your bargaining power. You'll become an afterthought. It will be decades before the uk will become a trade power again. Unless those whisky tariffs are providing more a return than I think.

  38. ther e wont be a uk in the future. the union will disintegrate in a few years. they are becoming extremely nationalistic. convservatives only care about the elites and their wealth.

  39. To be Singapore on the Thames they need to reduce all tariffs for the nation as a whole over a 5 year period. Singapore's success is not that it has trade deals with every country. Nearly every country on earth has trade deals with every country. Singapore's success is built around the idea that it has zero tariffs at all. Singapore businesses cannot rely on any government protection of industry. Singapore must compete with and be better than every nation on earth in terms of quality and price. If it can't compete with the entire global economy Singapore workers can't be in that industry. This makes Singapore extremely efficient and extremely competitive.

    What Johnson is proposing is not the Singapore model. The Singapore model would give all of the benefits to all businesses. If everyone had the tariff tax cut there would be no advantage to moving to a poorer tax-free zone. All industries would have to compete or die.

  40. from Jonah Norberg Yes, socialism was defeated in the UK election, but unfortunately, so was Thatcherite free market liberalism. In case you have missed it, Tories is rapidly transforming into a statist conservative party, to realign with their new nationalist blue collar voters.

    In fact, the Tory manifesto is a long Thatcherite suicide note:

    – Public spending will increase in a country where it is already 40% of GDP and public debt 80%. For the first time in 18 years, not a single government department will endure cuts.

    – Farmers have been promised that the levels of subsidies they got from the EU (which they used to think was wasteful) will be maintained.

    – Increase corporation tax and probably the capital gains tax as well.

    – Increase the minimum wage (which they objected to when it was introduced) to two thirds of median earnings – the highest in the developed world.

    – Scrap EU rules that block state aid to companies, to “make it faster and easier for the government to intervene to protect jobs when an industry is in trouble”.

    – Tear up EU rules on public procurement, “by ensuring the public sector buys British”.

  41. I hear Singapore, I hit like. If only we could get rid of our xenophobia and be more accepting of foreigners and minorities.

  42. Gotta say, not a fan of the cheesy loud blues music and the amateurish voiceover. If you’re gonna have a guy read headlines and titles to us, then he should have a good voice.

  43. the problem is UK has about 44% of it's trade with the EU , and they want to throw that to the bin and are telling everyone that they will recover that trade with outside world countries like USA or New Zealand, that's a big fat lie

  44. The world business language speaks in English, the UK has the upper hand in any talks. Considering its our native tongue. We can manipulate it far better than anyone else. Watch England Wales Scotland N Ireland and the commonwealth boom. e.u had us on a leash. The UK CommonWealth & the USA is pretty much invincible combination.
    The UK may not rule the world anymore (rightly so) but we still lead it. Only my opinions & beliefs. But I'm pretty sure they're spot on.

  45. I want to be free but I am realistic !
    happiness ? what for ? Endless EU slavery awaiting you Britons ! Boris is unable to make us free with his "deal" !
    Nigel Farage dashed our hopes of freedom by selling us to Conservative's rats and traitors ! Welcome to EU slavery state !

  46. Singapore also has strict control on citizen behaviour. Britain wont get Singapore on Thames, it will get Britain on Thames pre EU

  47. Those ports are all over Europe, mostly used for storage and not jobs, when it is Nissan then it will be made in Spain, win win for Spain thanks brexit…

  48. I'm uncertain. Should I continue to learn the Arabic language so that I can talk to the people living in the U.K.or will my American pigeon English still be acceptable.

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