Industry group calls for longer transition period

THE head of one of Britain’s biggest business groups has called for a “significantly longer” transition period after next year’s exit from the European Union.

Stephen Phipson, chief executive of the EEF manufacturers organisation, urged the Government to recognise the dangers to jobs and livelihoods that would follow the loss of EU membership benefits while negotiations with the World Trade Organisation are still in their infancy.

He said an extension to the transition period was now “vital”, adding: “As we have consistently said, successful international trade deals take years to negotiate.

“The Government’s hope that agreeing a tariff schedule with the WTO would be simple was naive. At a time of rising protectionism and the return of barriers to trade, it is no great surprise that other countries have refused to accept our ‘cut and paste’ short-cut.

“Many of our members have been planning on the back of repeated assurances that membership of the WTO and new trading deals with other countries would be struck quickly and easily.

“Now the Government must recognise that this strategy has failed and it must allow industry sufficient time to prepare for an uncertain global trading relationship.

“We must not give up all the benefits of the EU.”