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Common Agricultural Policy and the Uk

In: Business and Management

Submitted By bobson101
Words 14699
Pages 59
The economic impact of EU membership on the UK

This note examines the various channels through which membership of the EU affects the
UK economy. A general sense of the EU’s economic impact can be gained by reading
Section 1 alone. Subsequent sections deal with particular issues, such as the EU’s effect on
UK trade relations, in more detail, and compare the UK’s situation with alternative arrangements. Contents
1

Introduction and summary

2

2

Cost-benefit analyses of EU membership

5

3

The effect of the EU on UK trade relations

6

4

Impact of immigration from the EU

16

5

The impact of EU regulation

20

6

Fiscal consequences of EU membership – the EU budget

23

7

The EU’s effect on consumer prices

28

8

Foreign direct investment (FDI)

30

Appendix table: a comparison of the EU with alternative trading arrangements

32

Boxes
Would independence over trade policy lead to better results?

15

The EU budget – winners and losers

27

Trade barriers and economic efficiency

29

Related Library briefings
Leaving the EU, Research Paper RP13/42
In brief: UK-EU economic relations, Standard Note SN6091
Norway’s relationship with the EU, Standard Note SN6522
Switzerland’s relationship with the EU, Standard Note SN6090
The UK and Europe: time for a new relationship?, Standard Note SN6393

1

Introduction and summary

1.1

Understanding the economic impact of EU membership

EU membership influences the UK economy in a number of ways. The most important effects arise through the Single Market, the programme of economic integration through which the
EU’s ‘four freedoms’1 are guaranteed. But the economic impact of the EU is felt in other areas of its policy, too. The EU has exclusive competence to negotiate trade and investment agreements with countries outside the Union;...

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