Brexit negotiators must heed business’ concerns

Director of CBI Wales Ian Price on the priorities for Welsh business in the Brexit negotiations

With Article 50 now triggered, it is critical that we see the successful agreement of a comprehensive new relationship with the European Union within the Article 50 period.

Earlier this week, the CBI wrote to all Welsh MPs, AMs and MEPs outlining the priorities for business in Wales during the Article 50 negotiations. I cannot stress too strongly that we live in a globally competitive world and we must all work hard to ensure that we are not hamstrung by a poorly thought-out and negotiated Brexit.

Through discussions with companies in every sector, it is clear that a Brexit that works for Wales will be one that takes into account the needs of the whole economy.

The UK Government must strike an ambitious agreement with the EU that ensures we avoid new barriers to trade and a smooth process without a cliff-edge. The “Great Repeal Bill” must prioritise stability in the first instance.

In the longer term, the UK Government will need to negotiate continued co-operation between UK and EU regulators and rules to achieve its ambition of “frictionless” trade, while exploring opportunities for greater domestic flexibility.

Above all, UK companies need to know as soon as possible about the UK’s future trading relationships. That’s why the next six months are crucial.

Through discussions with companies in Wales, it is clear to me that a Brexit that works for Wales will be one that takes into account the following four factors.

Firstly, it must avoid trade barriers. The UK Government must strike an ambitious agreement with the EU that ensures we avoid new barriers to trade and a smooth process without a “cliff-edge”.

Barrier-free entry to the EU single market is of fundamental importance to many businesses in Wales. Businesses would experience serious disruption if no new trading relationship is agreed and they are forced to trade with the EU under WTO rules. This disruption would also apply to businesses in the EU which trade with UK.

Even if a deal is agreed, if it is not comprehensive businesses will face significant changes. Until they know what the changes are, businesses will struggle to prepare for them.

Secondly, a Brexit deal must secure stability from day one. Business needs to know the rules and regulations they will be following the day the UK leaves the EU. They require certainty in order to plan and do business.

To avoid a “no deal” scenario occurring by default if agreement can’t be reached in the Article 50 period, it may be necessary to negotiate a temporary arrangement that provides a period of stability.

Openness to negotiating this should be an early priority for the UK. Assurance of a temporary arrangement would provide local businesses with the confidence they need to make Brexit a success.

Thirdly, it must allow EU staff to stay. Firms in Wales employ thousands of people who come from the EU. These valued members of staff need urgent reassurances that they will be able to stay. We need to be able to give them certainty urgently.

Longer-term, businesses understand that the Government will need to design and implement a new migration system.

It is important that this system enables companies to hire the people they need to fill the vacancies they face. There are real skills shortages in key sectors in the Wales, including shortages of construction workers and engineers.

Finally, it must protect the UK single market. The UK and devolved governments must work together to ensure we maintain an effective UK single market.

A set of simple, common rules is essential in allowing firms throughout all regions and nations to do business with ease and without complexity. Protecting the pillars of our single market is key to sustained growth.

The business community here will support policymakers throughout the negotiations – offering insights and understanding to the unexpected questions which will no doubt occur. This will need a collective effort and close partnership if we are to succeed.

The economy of Wales is built upon the hard work and wealth creation of the companies that are located here. We must ensure that the priorities of the business community in Wales are at the forefront of discussions on Brexit.