Deal or no deal?

Andrew Vass (Letters, 21 August) mentions that the recent report from the Institute for Economic Affairs (IEA), the neo-liberal think tank, had calmed Tory nerves, by claiming that leaving Europe with no deal would not cause economic disaster.

But it is even worse than Andrew has said as the IEA have their facts completely wrong. Without a deal with the EU, the UK would have to fall back on WTO rules. The IEA say that the EU can simply decide not to impose tariffs on UK goods and we are all happy. But that’s not right. Under WTO rules, the EU can’t eliminate tariffs on UK goods without extending this to every other country, such as the US, China etc. Which would be economic suicide for the remaining EU members. The EU are not stupid, but it appears the IEA are; the UK must have a deal.

Such is the IEA’S antipathy to the EU, and to anything other than free trade, they don’t know the basic rules. This is reminiscent of David Davis, on being appointed International Trade Minister, saying he was going to go round the world creating new trade deals but did not know that EU rules prevent members negotiating deals while they are part of the club.

Tory nerves should be jangling. Their leaders and advisers appear to be completely out of their depth and have not the faintest idea how the EU or trade works. The hapless Theresa May said last year that no deal is better than a bad deal. There is also talk of the Tory negotiators staging a walk-out of the talks over the divorce bill, for party political purposes, creating an impasse which will force us out of the EU with no deal. What an utter shambles.

PHIL TATE Craiglockhart Road, Edinburgh