The Telegraph (HERE) are reporting the CEO of Nestle saying that Brexit doesn't change the fact that Nestle are in the UK forever. But this rather misses the point. No one is suggesting that Nestle would close any plants here in the UK - at least not while they remain profitable. But were Britain to leave the single market and trade on WTO terms there would be a tariff of around 30% on chocolates and confectionery.
I assume that KitKats made in York are exported to the EU at the moment but if tariffs are imposed Nestle might think it is better to produce for the EU market inside the EU. This might mean a factory in Poland for example, is opened and KitKat production begins there. The York factory would continue to produce mainly for the home market and we would lose some or perhaps all of the exports. And this would continue until (perhaps) Poland could produce KitKats at a price where the tariffs on UK imports are not enough and then the York plant might look a little shaky.
The CEO also makes the same point that I have made previously, that the EU gets blamed for a lot that is not their fault. He says,
"Too often [the EU is] abused by politicians who say whenever things go wrong nationally it is always the responsibility of Brussels. So somewhere Europe has to be closer to the people, transparent, simple, and also when governments say something, they have to do it".
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