‘Deal is our responsibility’

Leaving the European Union without a deal on future trade arrangements would be “not only wrong but irresponsible”, the head of the CBI is warning.

Paul Drechsler, the CBI president, says that if the UK is left to fall back on World Trade Organisation (WTO) rules after Brexit it will open up a “Pandora’s Box” of unforeseen consequences for the economy.

In a keynote speech in the City of London, Mr Drechsler said that British firms exporting to the EU would face tariffs of 90% on their products without an agreement as well as a raft of new regulatory hurdles to negotiate.

While some businesses were already preparing for such a “worst case scenario”, others were unable to do so because the costs were too high.

With Theresa May on course to invoke Article 50 marking the start of the formal process of withdrawal from the EU by the end of the month, Mr Drechsler will highlight the deep unease among the business community over what happens next.

“Rightnow, it feels like we’re just reaching the top of the Article 50 rollercoaster.

“Any minute now, maybe next week, maybe the week after that we’ll suddenly drop into the twists and turns of negotiations,” he will say according to advance extracts of his speech .

Businesses on both sides of the Channel, he will say, are concerned at the implications for future trade if the Government is unable to reach a deal with the remaining 27 member states.

“We should be under no illusions about what this would really mean. A ’no deal’ scenario would open a Pandora’s Box of economic consequences.”