CBI calls for interim deal for Britain to remain in single market
In a bid to provide companies with continuity, the CBI is seeking an interim deal that would allow the UK to stay inside the single market and customs union, until a full Brexit deal is agreed upon.
7 July 2017
The UK's largest business group is calling on Britain and the EU to reach an interim deal to allow the country to stay inside the single market and customs union until a comprehensive Brexit agreement is ironed out.The Confederation of British Industry (CBI) said the two sides should agree transitional arrangements as soon as possible to provide companies with continuity and certainty, protecting jobs and trade flows.
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"Our proposal is for the UK to seek to stay in the single market and a customs union until a final deal is in force. This would create a bridge to the new trading arrangement that, for businesses, feels like the road they are on. Because making two transitions – from where firms are now to a staging post and then again to a final deal – would be wasteful, difficult and uncertain in itself. One transition is better than two and certainty is better than uncertainty."Firms tell us this feels like common-sense. But if others have alternatives that deliver equivalent economic benefits, now is the time to put them on the table."The goal should be a framework for the new trading relationship before we exit in March 2019. A ‘heads of agreement’, to use the language of business, in writing, that will allow technical talks to start."We need a bridge to the new future, and, with our EU partners, should start building it now. The prize is more investment, more jobs and reduced uncertainty for firms here and in Europe."
Read David Sapsted's article on Establishing Right to Remain – which discusses the uncertainty over immigration which the UK faces following Brexit – in the Summer 2017 issue of Relocate Magazine.
For related news and features, visit our Brexit section.
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The need to avoid uncertainty
According to the CBI, "The question is not whether the UK leaves the EU, but how. Firms are committed to making a success of Brexit. The CBI’s proposal is to build a bridge from the end of the Article 50 process in March 2019 to the new deal, maximising continuity for firms and avoiding a damaging cliff-edge. Crucially, it would mean that firms would only need to make one transition."In a lecture at the London School of Economics, Carolyn Fairbairn, CBI director-general, argued that uncertainty was hitting the economy and businesses, with fears of a 'no deal' resulting in companies already changing plans and slowing investment.It is a message the CBI was expected to repeat when business leaders hold a summit with Brexit Secretary David Davis over the weekend.Ms Fairbairn said, "Instead of a cliff edge, the UK needs a bridge to the new EU deal. Even with the greatest possible goodwill on both sides, it’s impossible to imagine the detail will be clear by the end of March 2019. This is a time to be realistic.Related news:
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"Our proposal is for the UK to seek to stay in the single market and a customs union until a final deal is in force. This would create a bridge to the new trading arrangement that, for businesses, feels like the road they are on. Because making two transitions – from where firms are now to a staging post and then again to a final deal – would be wasteful, difficult and uncertain in itself. One transition is better than two and certainty is better than uncertainty."Firms tell us this feels like common-sense. But if others have alternatives that deliver equivalent economic benefits, now is the time to put them on the table."The goal should be a framework for the new trading relationship before we exit in March 2019. A ‘heads of agreement’, to use the language of business, in writing, that will allow technical talks to start."We need a bridge to the new future, and, with our EU partners, should start building it now. The prize is more investment, more jobs and reduced uncertainty for firms here and in Europe."
Achieving an agreement as soon as possible
Ms Fairbairn described the CBI's approach as common sense as it would offer the prospect of continuity to firms both in Britain and Europe, and would protect investment."We’re seeking the most ambitious and comprehensive free trade deal ever agreed in history," she said. "A deal that makes sure bakers in Northern Ireland can sell their bread to Dublin without delay and barriers. A deal where car manufacturers can continue to bring in parts from all over the EU without red tape. A deal where cosmetics firms can work under one set of standards across Europe. A deal where our services firms, which are 80 per cent of our economy, can continue to export to their main market, in particular our financial services."Agreement is needed fast – waiting until March 2019 is too late. The exact mechanisms to achieve this can be debated and negotiated. But for businesses making daily decisions about where and how much to invest, this is the simplest answer to the uncertainty they face today."Read David Sapsted's article on Establishing Right to Remain – which discusses the uncertainty over immigration which the UK faces following Brexit – in the Summer 2017 issue of Relocate Magazine.
For related news and features, visit our Brexit section.
Access hundreds of global services and suppliers in our Online Directory
Get access to our free Global Mobility Toolkit
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