star-action-figures, I presume that you sell your items overseas? 

And enjoy the benefits that are offered by almost every country in the world which see that no duty is paid on your exports under a certain value?

I mean.... when somebody from America purchases one of your action figures for £10, you appreciate the fact that this will typically fly through customs as under threshold with your customer not getting an invoice for that purchase? 

Or are you advocating protectionism, a world where we are all penalised for trading with eachother? I don't think that protectionism would be a very good thing. 

The Channel Islands was not special in this relationship, it had the same relationship as every other non-EU country. Now it is disadvantaged against every non-EU country because it is the only one which we don't give a low value VAT exemption to. 

I'm not sure how the treaty really relates in any way to the fact that countries have reduced trade tariffs over the past thirty years, because the EU saw trade tariffs abolished almost completely between EU member states..... of which the Channel Islands is not one.

I think that you are being heavily critical of something which you and I both benefit from. In my case immensely, as I don't pay import VAT on most of my stock (beneath the threshold) and I or my customers from overseas don't have to pay any export/import duty when sending an item.

You appear to have double standards. I mean, it is fine if you want your overseas customers to have to pay 15% or 20% extra for each of your products, but it would result in less sales - you don't really have much to gain from that. 

You call the Channel Islands VAT thing a "tax loophole", only it was never a loophole and you are showing a poor understanding. A VAT free threshold on imports into the UK is applied evenly throughout the non-EU world, and almost every other country in the world has a similar system.

Now if I buy something for £10 from China I pay £10, and if I buy something for £10 from the Channel Islands I pay £12. 

Only..... the Channel Islands is part of the UK, and China isn't, one contributes to our GDP and one doesn't. I can go and work in one without a work permit, I can't in the other.