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Today we published my latest paper Changing the Rules: A unilateral approach to non-tariff barriers. It sets out the case for recognising the regulations and conformity assessment bodies (CABs) of other countries without requiring reciprocality: if a country or territory has regulations that objectively meet our requirements, we should accept its goods on to the UK market. Read the full paper here.
In particular, and as a priority, the UK should continue to recognise EU rules and the 'CE' mark. When Brexit took effect, the EU declined to continue to recognise UK rules or CABs, but we continued to recognise theirs, to ease the burden on traders and consumers. That is set to come to an end for food and agriculture (SPS) regulation this summer, and next year for industrial goods.
The Rt Hon Jacob Rees Mogg MP, the new Minister for Brexit Opportunities, has already reacted, noting that 'anyone who believes in free trade will welcome this report. Non-tariff barriers are the delight of protectionists and should be removed wherever possible.'
I previewed the paper in an interview on Times Radio on Wednesday morning and recorded a podcast for the IEA which you can listen to here. It received coverage in the Sunday Telegraph, Sunday Express and Sun on Sunday.
In my view, this is one of the most important Brexit opportunities, not just to mitigate costs of trade with the EU but to show global leadership in breaking down trade barriers. We hope that policymakers will give this paper due consideration as a genuine free trade measure that would be far more pro-consumer and pro-competition than many of the interventions that are being pushed out under those labels.
Victoria Hewson
Head of Regulatory Affairs, Institute of Economic Affairs
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LIVE WITH LITTLEWOOD SPECIAL
This week, IEA Director General Mark Littlewood hosted a Live With Littlewood special from Sri Lanka, and welcomed prominent free market figures from the Asia-Pacific region. Mark was joined by Jordan Williams, Executive Director at the New Zealand Taxpayers' Union, Rainer Heufers, Executive Director of the Center for Indonesian Policy Studies, Dhananath Fernando, Chief Operating Officer at the Advocata Institute and native Australian Matthew Lesh, the IEA's Head of Public Policy.
Top of the agenda was the geopolitical struggle with China: how are freedom loving organisations in the region dealing with the rise of Chinese authoritarianism? Mark also addressed the domestic economic challenges facing Sri Lanka, Indonesia and New Zealand. And both Matthew and Jordan criticised New Zealand Prime Minister Jacinda Ardern's "zero Covid" strategy, arguing it was time the country learnt to live with the virus. Watch here.
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WINDFALL TAX
As the energy crisis continues to bite, calls for a windfall tax on the profits of energy firms have grown louder. Both Labour and the Liberal Democrats have suggested using revenue from the tax to help bill payers with rising costs.
Appearing on BBC News on Tuesday, IEA Economics Fellow Julian Jessop argued that the energy crisis has been caused by an imbalance of supply and demand, not corporate greed, as some would suggest. Julian agreed that the poorest need support to weather the price increases, but a tax on energy firms would drive away much-needed investment in the sector. Watch the full interview here.
Julian also discussed the windfall tax on BBC Radio 2. Listen here (from 1:06:00). He also went head-to-head with Leader of the Liberal Democrats Sir Ed Davey on BBC Radio 5 Live. Listen here (from 16m10).
Julian wrote an opinion piece for City AM on the issue, setting out the reasons why a windfall tax is the wrong course of action. He dismissed the idea that energy giants like BP are making 'unfair' gains, saying: "these are huge, global companies, and their profits are far less remarkable when compared to turnover, or capital employed". Read here.
IEA Energy Analyst Andy Mayer was quoted in City AM, reminding readers that energy firms made significant losses during 2020 when prices plummeted and have only just regained profits to pre-pandemic levels. Read here.
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iN THE MEDIA
The cost of wokery... In his fortnightly column for The Times, IEA Director General Mark Littlewood suggested that many firms are prioritising virtue signalling and social and political issues over delivering products to their consumers.
Mark argued that the power of the market will stop corporates pandering to woke narratives: "If markets operate openly and freely, those worried about the threat of cancel culture can feel assured that it will not take long for businesses and industries to adapt to what consumers really demand."
Mark also discussed his article on Times Radio. Listen here (from 18m45). We also recorded a debate on woke corporatism this week with IEA Senior Research Fellow Dr Jamie Whyte and our Senior Policy Advisor Sam Collins – now available on our YouTube channel here.
More harm than good? The Online Safety Bill continued to grab headlines this week, after Culture Secretary Nadine Dorries declared last Saturday that she would 'bring order to the online world'.
IEA Director of Communications Annabel Denham wrote her weekly column for The Spectator on the Bill, warning it risks stifling competition and innovation. The cost of implementing online safety measures, she explained, will fall largely on the smallest firms, entrenching the market dominance of big companies. Read here.
Porn Laws... This week, it was suggested that the Online Safety Bill will include provisions which force online users to provide age verification to access adult websites. IEA Head of Public Policy Matthew Lesh, who co-authored the recent IEA paper In Harm's Way, warned that the plans could threaten security and privacy. Read here.
Matthew discussed the Online Safety Bill on GB News last Sunday, and Dr Jamie Whyte explored why the Bill threatens free speech on Bloomberg Radio.
Learning to live... On Wednesday, the Prime Minister announced his intention to end all Covid restrictions, including self-isolation rules, by 24 February at the latest.
IEA Head of Lifestyle Economics Christopher Snowdon appeared on GB News to discuss the news, saying: "the world is coming to terms with the idea that this is a milder variant". We should not, he added, be concerned about ending restrictions too soon. Watch highlights here.
Covid backlog... This week Health Secretary Sajid Javid warned MPs there is no short-term fix that will ease NHS waiting lists, warning the backlog will only start to come down in 2024.
Christopher was quoted in The Telegraph saying this could be eased by incentivising greater uptake of private healthcare through the tax system. Read here.
Pension burden... A report has highlighted the disparity between public and private sector pension pots. Critics warned that the public sector pension bill will have to be met by future taxpayers in order to honour 'gold plated' deals still on offer to public sector workers.
IEA Chairman Neil Record commented on the report in the Daily Express, saying: "There is this cotton wool wrapped around public sector employees. No politician ever faces the harsh realities that a finance director of a company does". Read the full article here.
The last hurrah?... The Office for National Statistics published the latest set of GDP data on Friday, showing that the UK economy grew 7.5 per cent in 2021 – the fastest growth rate since the Second World War.
IEA Economics Fellow Julian Jessop welcomed the positive news, but gave a word of caution. The economy shrank by 9.4 per cent in 2020 – and the latest figures could be the "last hurrah" as high inflation and tax hikes begin to bite. Read here.
Net-zero future... IEA Energy Analyst Andy Mayer responded to various energy policy announcements this week, including Cuadrilla’s decision to permanently abandon fracking sites. Andy was quoted in City AM, calling the decision "political cowardice, NIMBYism and expensive ‘leave it in the ground’ posturing". Read here.
Andy also appeared on GB News to discuss nuclear energy, after European scientists claimed they made a major breakthrough in their quest to develop practical nuclear fusion.
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IEA PATREON
Thank you to all of you who have already signed up to become an IEA Online Patron. Becoming a Patron grants you VIP access to our latest videos, priority invites to our virtual events, and the opportunity to engage directly with IEA Director General Mark Littlewood and the IEA team. For just a small donation you can get all these benefits and more.
To visit the page and find out more about the IEA’s Patreon, follow the link here or watch our trailer here.
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IN CASE YOU MISSED IT
All those in favour say aye... IEA Head of Political Economy Dr Kristian Niemietz took part in a debate at King's College London, hosted by the University's Conservative Association and Labour Society, on the motion “Should the NHS be privatised?
Kristian spoke in favour of the motion against Chris Thomas, Research Fellow at the Institute for Public Policy Research.
You can read a transcript of Kristian's arguments here.
Parallax Views... IEA Head of Cultural Affairs Marc Glendening welcomed prominent free speech supporter and academic Professor Arif Ahmed MBE to the latest episode of Parallax Views, a series of discussions with public figures on cultural issues. The pair discussed the challenges of promoting free speech at Cambridge University, cancel culture and academia. Watch here.
Escalation or appeasement? And from 9.30am today, you'll be able to watch the latest episode of Markets & Morality on our YouTube channel. As the Russian-Ukrainian conflict intensifies, Director of Epicenter Adam Bartha welcomed Dr Steve Davies, the IEA’s Head of Education, and Dr Dalibor Rohac of the American Enterprise Institute to debate what the best course of action may be to resolve the tensions.
Is the West willing to walk the walk and help Ukraine militarily? Why did the Minsk Agreement fail and what can replace it? Watch here.
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WE'RE HIRING!
Editorial Internship... The Communications team is looking to hire an intern to support our editorial output. This is a full-time internship, with expenses paid.
The primary responsibility will be to write, edit and commission articles, draft newsletters, and promote content across all IEA social media channels. You can find out more here.
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CALLING ALL STUDENTS!
We have a several opportunities coming up for students, including exam revision courses, internship programmes, and summer schools. The deadline to apply for these programmes is 1 April.
Sixth Form Future Thought Leaders’ Programme... You can also apply to attend a week-long programme for sixth formers which will take place from Monday 25 – Friday 29 July. The week will include lectures, discussions, and debates with expert economists.
Due to high demand, we are pleased to announce that an additional week of the Sixth Form Future Thought Leaders’ internship will also take place at the IEA between Monday 18 -Friday 22 July. This week-long programme for sixth formers is a way to get experience discussing economic ideas and concepts beyond the exam curriculum.
To apply, please send a CV and short covering letter to IEA Outreach Coordinator Thomas Robinson at [email protected] explaining why you would like to take part.
Residential Summer School... In partnership with the Institute of International Monetary Research, the Vinson Centre, and the Initiative for African Free Trade and Prosperity, the IEA will host a residential summer school.
This programme is open to undergraduate students and will take place from 27 June to 8 July. It will have four streams: general economics, monetary theory, economic history, and trade and globalisation.
Summer School Internship... Last but not least, our summer school internship will start from Tuesday 2 August – Friday 19 August. Interns will participate in lectures, seminars, debates, discussions, as well as workshops on professional and career development.
You can find out more about all of our internship programmes here, or email IEA Head of Outreach Brittany Davis at [email protected] with any questions.
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MONEY WEBINAR SERIES
You can now register to attend a new series of online webinars hosted by the Institute of International Monetary Research.
World-leading monetary analyst Professor Tim Congdon will hold a webinar on banking in a free society on 23 February. Register here.
Professor David Llewellyn will explore whether the regulation pendulum has swung too far in the banking industry on 16 March. Register to watch here.
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