No deal is ‘extremely undesirable’

Business groups from across northern Europe have urged both sides in the Brexit talks to agree a trade deal as soon as possible – with the UK staying in the single market and customs union during a transition period.

The call from chambers of commerce from seven countries said firms need to start preparing for any new arrangements but most of the “big issues” of concern to businesses had “not yet even been touched on” by UK and European Union negotiators.

They demanded clarity on the outlines of a future EUUK trade agreement over the coming months and warned they were “increasingly concerned about continued rhetoric on a no-deal scenario”.

The joint call comes from the British Chambers of Commerce (BCC) and counterpart organisations in Ireland, Germany, France, the Netherlands, Denmark and Belgium – countries that account for around 70% of EU-UK trade.

Theresa May has repeatedly stressed that “no deal is better than a bad deal” and some hardline Eurosceptics have urged the Prime Minister to walk away from talks and leave the bloc on World Trade Organisation terms.

However, the chambers of commerce warned: “A ‘no deal’ scenario would be extremely undesirable for business as this would mean they will be faced with higher tariffs, more burdensome customs procedures and longer delays than under a negotiated separation.”