NEGOTIATORS on both sides of the Brexit talks should aim to agree transitional arrangements as soon as possible, according to the CBI.
A limited period of transition, beginning when the Article 50 process ends, would provide firms with continuity and certainty, protecting jobs and trade flows, said the business organisations.
The CBI is proposing that the UK seeks to stay inside the EU single market and a customs union until a final deal is in force.
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.
Carolyn Fairbairn, CBI Director-General, 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.
“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.
“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.”
importance of tariff-free UK-EU trade.
“They want to avoid additional costs in their supply chains so they can keep prices as low as possible for consumers.
