Then isn't that a good bargaining position for Britain? Surely they would realize that if they were to try and "punish" the U.K. for leaving by imposing very high tariffs on British imports that the U.K. government would quite likely retaliate by imposing similarly high taxes on European goods?Of course the EU wants the trade. Do you think it would want to lose the exports to UK? Of course not!
Full "harmonization" of VAT hasn't happened yet, but the main reason for alcohol being cheaper in Europe is not the VAT but the high level of duty imposed in the U.K.Do you think it would want to lose the specialities that UK has to offer? (Scotch! Which is currently a fair bit cheaper in EU than UK. So much for your propounded theory of harmonisation of VAT, etc
Perhaps, but as above, they would surely realize that doing such would quite like provoke H. M. Government in the U.K. to impose similarly high tariffs on European imports, which would not be good for the EU if the latter really wants to keep up exports to the U.K. as you say.But it would do so at rates beneficial to EU! Just taking one example. It could easily raise the import duty of Scotch to bring the price in line with current UK prices!
China throws in a whole batch of extra problems, although as I said before, from my personal point of view I'd be happy to see a complete embargo on trade with China for various reasons.Because it would have to start from scratch on creating trade agreements. We've seen, by Nige's (and thanks to F&I) hilarious example of the China agreement. which has taken 9 years and is still not in force, and only not only includes fish exports to China (probably includes some clauses to allow Chinese fishermen into Icelandic waters as well!) but also includes collusion on Human Rights and the environment!
But if whatever U.K. government of the time were working toward withdrawal from the EU by a certain date, do you not think it would already be trying to establish trade agreements with other countries before the actual withdrawal date?