b'The evidence above is clear: German carmakers - rather impressively - have exported passenger vehicles to the USA in each of the last five years to a value in excess of $20 billion. Each and every one of these vehicles have to comply with US regulations. The US regulations are drawn up in the first instance according to the criteria of US car manufactures (mostly in Detroit) and more important in this context, the German car manufacturers have little or no input in the formulation of these regulations. The importance of the point can hardly be overstated. An exporting country is obliged to, and moreover can, export successfully with no little or no input into regulations. Mutual Recognition (of regulation) is of course important and desirable - and some examples are set out below, but it is not the be-all or end-all. By way of example, a manufacturer not in an EU member state that exports to the EUOn Brexit, the same would apply to the UK, may well decide to manufacture its entireand there is no reason to suppose that the output under EU Single Market rules. ThisUK could not be at least half as successful. could well be for reasons of practicalityThis element of our argument leaves aside and/or enhanced profit. But, that is thethe inconvenient truth, set out in Chapter 1, manufacturers choice. Post Brexit, that couldthat within the EU, the UK in practice has also be a choice for a UK manufacturer.little or no meaningful influence, whether on Single Market rules or, for that matter, much In the case of Switzerland, its massiveelse. exports to the EU are heavily oriented towards manufacturing. As has been pointedThe Single Market also imposes specific out in a letter to the Financial Times incosts on the UK consumer. UK consumers November 2015, Switzerland is actually theare unable to purchase goods at world most industrialised economy in the world,prices, but instead have to pay EU Single with the highest rate of manufacturing outputMarket prices, which are almost always per person. We dont see many Madesubstantially higher. This is the basic in Switzerland products,partly because theprinciple behind the finding of the simulation country is small but also because itconductedby Professor Sir Patrick Minford specialises in what economists call producerthat, post Brexit, there would be an almost goodsmachines and industrial chemicalsimmediate eight per cent reduction in the UKthat ordinary consumers do not see.cost of living.2 The remainder of this chapter Switzerland is able to export massively to theaddresses the especially thorny issues of EU without having a vote on Single Marketaccess to the Single Market and the free rules.movement of people.110'