Staying in the EU customs union would mean that the UK would be forced to change EU trade deals without having a say in research. And although there are some additional tariffs first, a trade agreement between the UK and the EU is likely, as it is in the mutual interest of each side to reach an agreement. Average import tariffs have fallen in recent years, which could help mitigate the macroeconomic effects of an exit from the EU customs union agreement. Overall, I think continued membership of the customs union is the best thing for the UK to do. The theory of the seriousness of trade strongly suggests that we are negotiating more with countries in the immediate vicinity, and that is unlikely to fundamentally change in the years to come. The EU has more than sixty-five free trade agreements and preferential agreements with countries such as Canada, South Korea and Australia, and there is no guarantee that the UK will be able to secure better agreements with these countries. In a globalized world, it is essential to keep trade conflicts low in order to continue to attract foreign investment. Nissan employs 6,700 people in the UK and exported around 250,000 cars to the EU in 2015, about half of its production. These exports would be subject to a tariff of up to 10% outside the customs union if a free trade agreement could not be negotiated. Honda has already announced the closure of the Swindon plant in 2021. These are important sources of employment and income for regions outside London and show that the UK should remain in the EC for the foreseeable future. In recent years, there has been a flood of bilateral trade agreements between countries and the emergence of regional trading blocs. The European Union now has more than 30 separate international trade agreements, including those with countries such as Colombia and South Korea.
Collective wage negotiations take place between employers and trade unions (employee representation). Strong unions can negotiate higher wages for their members. In some sectors, union membership is a small percentage of employment and workers do not have the same strength of the strength of collective agreements.