May urged to focus on tariff-free trade during Brexit talks
BUSINESSES urged Theresa May to focus upcoming EU withdrawal talks on maintaining tariff-free trade between Britain and the continent, minimising customs barriers and allowing the continued recruitment of talent from overseas.
There was a broad welcome for the Prime Minister’s goal of a “deep and special relationship” with the remaining EU of 27, along with warnings from the CBI to avoid a “cliff-edge” departure which could harm business prospects.
The TUC called on Mrs May to take her time to get “the best deal for Britain” which will preserve jobs and workers’ rights.
And the EEF manufacturers’ organisation said she must resist pressure from those calling for a swift withdrawal without a deal.
Meanwhile, there was a warning from Britain’s music industry that a bad Brexit deal for the creative industries could block opportunities for future stars to repeat the world-beating success of British acts like Adele, Ed Sheeran and Stormzy.
“Globally successful, British music offers potent soft power and a ready-made diplomatic language,” said UK Music chief executive Jo Dipple.
“Getting the post EU-framework right for music means more jobs, more young people in apprenticeships, bigger export strength, more diplomatic power and more tax revenue flowing in from every city, nation and region. Getting it wrong probably means a return to punk rock.”
CBI president Paul Drechsler urged Mrs May to secure “early wins” on the rights of EU citizens in the UK and Britons on the continent, and details on the commitment to avoid “cliff-edge” changes after Brexit.
“Our shared aim must be to forge a mutually beneficial deal that delivers barrier-free trade and safeguards prosperity for all,” said Mr Drechsler. The Prime Minister has recognised this.”
The director general of the Institute of Directors, Stephen Martin, said success must involve “listening to business on the vital priorities of maintaining tariff-free trade, minimising customs red tape and keeping the bureaucratic hurdles to bringing in necessary skills as low as possible”.
“Maintaining confidence over the next few years will be key and that means the Government must prioritise a smooth Brexit, with the terms of the withdrawal deal and our new trading arrangement both agreed before we walk through the exit door,” he said.
Adam Marshall, director general of the British Chambers of Commerce (BCC), called for “a pragmatic and grown-up dialogue on the real-world issues, rather than verbal volleys between London and Brussels” to maintain business confidence over an uncertain two years.
EEF chief executive Terry Scuoler said securing a deal within two years would be “fiendishly difficult if not impossible” and said Mrs May must be ready to seek a transition period to settle new arrangements rather than adopting “cavalier or illjudged negotiating positions” which could end in her walking out without a deal.
“While she says there is no turning back, she must ensure that the Government heads in the right direction and is not unduly driven by those who will pressurise her to leave the EU without a deal. That cannot be an option,” said Mr Scuoler.
“A deal that leads to more bureaucracy and more cost for companies would be a very poor deal for Britain. Both sides should work towards a form of regulatory co-operation that allows current comprehensive trade arrangements to continue and make little or no change in the regulatory environment before a negotiated deal has time to bed in.”
Federation of Small Businesses national chairman Mike Cherry said: “FSB members want to see the easiest possible access to the single market. There must also be reassurance for small businesses which employ non-UK EU citizens and rely on the ability to recruit those with the skills and talents they need.
“There is now a two-year window of opportunity to influence EU law. FSB will focus efforts in the Commission and Parliament to secure pro-business reforms to the single market, as arrangements agreed between now and March 2019 will become UK law.”
TUC general secretary Frances O’Grady said: “The best deal will guarantee that hardworking Brits keep their hard-won rights at work and that in the years to come they won’t miss out on new protections that Dutch, Spanish and German workers get.
“It must protect good jobs with decent wages by keeping our trade free from tariffs and unnecessary bureaucracy. And it must end the disgraceful uncertainty for workers from other EU nations who’ve made the UK their home.”
She added: “The Brexit deal will define Britain’s future for a generation. We owe it to ourselves and our children to take the time needed to get it right.”