Arabic AR Chinese (Simplified) ZH-CN English EN French FR German DE Japanese JA Portuguese PT Russian RU Spanish ES Ukrainian UK

CBI urges single market until Brexit deal

Latest news

    Production line at Vauxhall car factoryImage copyright PA

    The UK should stay in the single market and customs union until a final Brexit deal is in force, according to the CBI.

    Carolyn Fairbairn, head of the business lobby group, said it was “impossible” that all the details of a new trade deal with the European Union would be in place by March 2019.

    That is when talks about the UK’s withdrawal are due to formally finish.

    To minimise disruption, UK businesses need a “bridge” instead of a “cliff edge” for the new deal, she said.

    The CBI’s proposal was backed by the manufacturers’ organisation EEF and the TUC trade union.

    However, the chairman of the pro-Brexit group, the Economists for Free Trade, said it appeared to be an attempt to remain in the EU “through the back door”.

    “This is not about whether we are leaving the EU, it is about how,” Ms Fairbairn said in a speech at the London School of Economics.

    “Once the Article 50 clock strikes midnight on 29 March 2019 the UK will leave the EU.”

    The CBI is proposing the UK stays in the single market and customs union “for a limited transition period paving our way to a new future”, she said.

    “This common-sense approach would bring continuity to firms in the UK and the EU and protect investment today,” she added.

    ‘Wasteful, difficult and uncertain’

    Otherwise businesses might be forced to adapt twice – first to a transitional arrangement, and then to the final trade deal, Ms Fairbairn said.

    “Making two transitions, from where firms are now to a staging post and then again to a final deal, would be wasteful, difficult and uncertain in itself,” she said.

    “One transition is better than two and certainty is better than uncertainty.”

    Image copyright Getty Images
    Image caption Ms Fairbairn says it’s “time to be realistic” about Brexit

    Terry Scuoler, chief executive of the manufacturers’ body EEF, said: “The absence of any clarity for businesses makes this a sensible approach to transition.”

    The TUC also backed the move, saying “it’s crucial that we get the transition right as we leave the EU”.

    However, Patrick Minford, chairman of the Economists for Free Trade and an economics professor at Cardiff University, said it was not clear what the CBI wanted.

    “They are constantly arguing for remain through the back door and this sounds like the same thing,” he told the BBC.

    He said the UK and EU would have to reach some kind of deal by the end of March 2019 and that would involve transitional arrangements.

    Post-Brexit trade

    The CBI’s comments come ahead of a government conference on Friday with business figures from sectors across the UK.

    The event, to be hosted at Chevening House in Kent, is part of government plans to work more closely with industries over Brexit.

    Business groups have increased their calls in recent weeks for the UK to maintain existing trading relations with the EU.

    After last month’s election, five business bodies – including the CBI and EEF – called for the government to maintain the economic benefits of the single market and the customs union.

    View the original article:

    The CBI has now gone further by urging that the UK stay in those trading arrangements until a final deal is in place.

    In the same category are

    St Leonards shooting: Man charged with double murder Image copyright PA Image caption Police cordoned off the scene of the double shooting in St Leonards A man has been charged with murdering a mothe...
    Gower wedding venue sorry for ‘Slightly OCD’ wanted tweet Image copyright Twitter Image caption Fairyhill tweeted images of misaligned cutlery A wedding venue on the Gower Peninsula has apologised for adv...
    Serena Williams: Miami Open tournament director says seeding rules should change Serena Williams played in the doubles in the USA's Fed Cup tie against the Netherlands last month - with her daughter in the crowdSeeding rules in wo...
    Anthony Watson: Bath & England back out for season with Achilles injury Anthony Watson made his England debut against New Zealand in 2014Bath and England back Anthony Watson will miss the rest of the season with an Achill...
    Sex and the City star Cynthia Nixon to run for NY governor Image copyright Getty Images Image caption Cynthia Nixon is a lifelong New Yorker Sex and the City star Cynthia Nixon has announced she launching ...
    Paul Pogba: Manchester United midfielder ‘can’t be happy’, says France coach Didier Deschamps Paul Pogba has made just 27 appearances for Manchester United this season, compared to 51 during the whole of last seasonManchester United midfielder...

    Leave a comment

    Your email address will not be published. Required fields are marked *