The CBI has released a new report intended to help the Government understand what British businesses desire from a UK-EU trade deal.
The report – entitled The Red Tape Challenge – is based on conversations with hundreds of firms of all sizes, across every sector and covers trade in goods and services, as well as customs arrangements.
The CBI believes that the report offers “concrete and practical recommendations” that are in line with the Prime Minister’s parameters for the negotiations set down in his recent Greenwich speech.
The CBI and its members appreciate the frictionless trade is coming to an end and so they hope that these recommendations will help to minimise red tape so that companies can focus on jobs and growth.
The report sets out three key principles that are based around 22 recommendations for a strong future economic relationship with Europe. The three key principles are:
- The UK is a world leader in services trade. As around 40 per cent of the UK’s services exports go to the EU, one comprehensive coverage of services trade in the UK-EU FTA, alongside deals on mobility and data, will be important to maintain this competitive edge.
- In traded goods, the proliferation of red tape – from veterinary checks to double testing of sauna stoves – for the UK’s exporters should be avoided through cooperation on regulation with the EU.
- While leaving the EU Customs Union will inevitably create new costs, negotiators should aim to keep customs costs and complexities low so firms can focus resource on R&D and innovation, rather than unproductive new administration procedures.
The CBI says its 22 recommendations within the report are “evidence-based solutions that aim to reflect the sense of purpose and direction of this Government.”
It is, as yet, unclear whether the Government intends to include any of the CBI’s recommendations in its future negotiation plans with the EU, but it is interesting to see what UK businesses consider to be the greatest hurdles to growth and prosperity.
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