Ex-Australian PM Tony Abbott was on Radio 4 yesterday, saying a no-deal Brexit wouldn't be as bad as people are making out. I can't remember any of his points, unfortunately!
He wrote an article last year on the topic in the Spectator, in which his opinion was based largely around this: "Freed from EU rules, Britain would automatically revert to world trade, using rules agreed by the World Trade Organization. It works pretty well for Australia. So why on earth would it not work just as well for the world’s fifth-largest economy?"
Well, firstly, because being the fifth largest economy in the world has been achieved by being a part of the largest free-trade block in the world, but discounting that, how exactly are WTO rules working for Australia?
Australia currently has trade agreements which supersede WTO rules with: New Zealand, Singapore, USA, Thailand, Chile, Brunei, Burma, Malaysia, Philipines, Vietnam, Laos, Cambodia, Indonesia, South Korea, Japan, China, Hong Kong and Peru, and is negotiating the Pacific Agreement on Closer Economic Relations Plus, as well as agreements with the EU, the Gulf Co-operation Council, India and potentially the UK.
So WTO works for Australia, basically, when they make agreements which mean they don't have to operate under WTO rules when it comes to dealing with their closest economic partners/rivals and with the world's largest economies and economic groups...
O.