Powershift

Both the Liberal Democrats and the SNP want to rejoin the EU. Why? They appear to be oblivious to the EU and UK’S trading history. The UK’S trade with the EU has been in decline for decades, having fallen from 60 per cent of exports to about 40 per cent in 2020 and is generally in deficit, which amounted to £80 billion in 2016.

In contrast, our trade with non-eu countries has been increasing for some considerable time, giving a large revenue surplus most of the time (about £100bn in 2018). When the UK was a member of the EU it generally did more trade with non-eu countries than with the EU, probably a reflection of its historical global trade interests.

The EU’S trade with noneu countries continues to decline and is now about 15 per cent compared to 38 per cent in 1973. Consequently, it is becoming an inward-looking economy and perhaps protectionist in outlook. Rather oddly, the EU estimates that between now and 2050, 90 per cent of global economic power will lie outside the EU. Others appear to agree, as 13 Asian countries, Australia and New Zealand have formed the Regional Comprehensive Economic Partnership, believed to be the world’s largest free trade pact, covering a third of the global economy. This highlights the growing shift in economic power from the West to the East, which the UK will be attracted to. Post-brexit, 85 per cent of global commerce is outside the EU. As the UK has always been a global trading nation, even when in the EU, this should bode well for us.

Which trading direction would the reader recommend? Yes, it is rather obvious! (DR) GORDON COCHRANE

Dargai Terrace, Dunblane