Brexit white paper

The UK government announces a Brexit white paper will be published this June ahead of the important summit between the UK and the EU. May's cabinet has not come to an agreement about what is going to be put in this white paper, which will be the guidance of negotiation with the EU; however, they all know the time for debating for the Brexit plan is about to over.

The UK has conflicted interests when dealing with the EU. It wants to have free access to the EU market, especially for its service sector. The service sector including the banking industry is one of the most significant comparative advantages. Once the UK leaves the single market of the EU, the transaction costs for the firms located in the UK. However, the corporate tax rate in the UK is relatively high, especially when comparing with the tax heaven countries, such as Luxumberg. Under such circumstances, the UK government cannot generate the tax revenues that match its economic size and market size.

In addition, since the EU tends to close the gap between its member countries, the UK needs to provide funds to support the relatively poor EU member countries and this has been effectively used to direct the UK population to vote for Brexit.

Overall, though the time is nearly over, I do not see that the UK is likely to create a reasonable white paper that will help the negotiation between the UK and the EU.