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Dame Carolyn to step down as head of CBI in November
A post-Brexit trade deal “can and should be done,” the organization representing British businesses said ahead of new trade talks between the UK and the EU on Monday.
Dame Carolyn Fairbairn, head of the Confederation of British Industry, said it was time for “the spirit of compromise to shine.”
The Brexit transition period, in which the UK has adhered to EU trade rules, ends on December 31.
The UK and the EU have yet to reach an agreement that will govern their future trade.
Prime Minister Boris Johnson has said that a trade deal with the EU must be signed by October 15 if it is to be ready for the start of 2021.
But despite this, the talks have run into trouble. There are still key points of disagreement, including, for example, fishing.
The next official round of talks, the ninth since March, begins on September 28.
The CBI conducted a survey of 648 companies that found that only 4% said they would prefer not to reach a trade agreement.
And half of the companies said that the impact of dealing with the coronavirus had negatively affected their preparations for next year, when the transition period ends.
“Next week the Brexit talks will enter the 11th hour,” Dame Carolyn said. “Now must be the time for political leadership and the spirit of compromise to shine through on both sides. An agreement can and must be reached.
“Businesses are facing an unprecedented triplet of challenges: rebuilding from the first wave of Covid-19, dealing with the resurgence of the virus and preparing for significant changes in the UK’s trade relationship with the EU.”
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He added: “A good deal will provide the strongest possible foundation as countries recover from the pandemic.
“It would keep UK businesses competitive by minimizing bureaucracy and additional costs, freeing up the time and resources needed to get through the tough times ahead.”
According to BBC Europe editor Katya Adler, an EU diplomat said the two sides were “90% there” to agree on technical issues.
The diplomat said that “the remaining 10% is political” and “if that cannot be resolved, then 90% is irrelevant.”
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- What trade agreements has the UK made?
Any trade agreement will aim to eliminate tariffs and reduce other trade barriers. It will also aim to cover both goods and services.
If negotiators fail to reach an agreement, the UK faces the prospect of trading with the EU under the basic rules set by the World Trade Organization (WTO).
If the UK has to trade under WTO rules, tariffs will apply to most products UK companies ship to the EU.
This would make UK products more expensive and harder to sell in Europe. The UK could also do this for EU products, if it so wishes.
