Pragmatic approach to policy is required

WHILST it is the case that the

Brexit problem has been resolved politically, in the main, apart from residual unresolved over issues over the role of the European

Court of Justice jurisdictions over the Northern Ireland Protocol, in particular, the economic problems of Brexit have not been resolved, as M Holly makes clear in a recent letter.

The economic problem, ever since the UK joined the EU nearly 50 years ago, has been the ongoing trade deficit, which has continued since Brexit in 2019, and has led to rising prices and falls in real wages in manufacturing industry in the

UK. This problem was masked since the 1980s by the surplus on financial services and the dominance of the City of London in financial markets, plus the revenues earned from the discovery of North Sea oil.

The implementation of Brexit has not failed, because the volume of trade with the EU has expanded and UK trade in goods as a share of GDP has reached £430.5 billion by the end of 2021, according to Eurostat, the economic database of the European Commission. This represents around 12% EU imports and just over 8% EU exports, a net difference of a deficit of 4% of UK GDP, or £17.22 billion on the balance of trade account.

In order to close this gap over time and sustain adequate growth in volume of trade with the EU, it is necessary for the UK Government to pursue a twin-track approach to trade, namely promote free trade with the EU and the rest of the world, where possible, and protect essential industries, particularly where national security is concerned, such as the steel industry, where necessary.

Implementation since Brexit will inevitably involve messy compromises, but a more pragmatic approach to policy-making by the Government is essential.

Jeremy Comerford Chippenham, Wiltshire