Do you think you're better off alone? Impacts of Brexit on New Zealand

Abstract

The decision really boils down to a fairly simple conceptual trade-off: are voters prepared to lose some of the benefits of free access to EU markets for goods, service and people in exchange for an increase in their sovereignty, especially as related to the movement of people from the EU to the UK? As Dhingra and Sampson (2016) note, “inside or outside the EU, this trade-off is inescapable”. This trade-off is not new of course – all international agreements involve ceding a degree of sovereignty in exchange for expected economic or social benefits. The UK will still be subject to numerous other international treaties should Brexit occur, so there is no absolute sovereignty available. There is certainly no free lunch – despite the arguments of the Leave camp, it is difficult to see a viable alternative that delivers the benefits of being in the Single Market without imposing the costs of immigration.