The lack of preparedness will significantly impact the majority of British sectors in the event of a no-deal Brexit, according to a report from the Confederation of British Industry.
In a significant development, the Confederation of British Industry (CBI), a British employers group made it lucidly clear that the European Union is less prepared for a no-deal Brexit than Britain, thus leaving the majority of British firms at a disadvantage in the event of a no transition agreement, thus potentially weakening Britain’s hand in trade negotiations.
“The combination of the EU and UK’s different approaches creates an imbalance, where EU goods and services exports will have easier access to the UK than UK goods and services exports will to the EU,” said the CBI in a report. “From the business perspective, the UK has taken the more responsible approach, but it has also put the UK in a position of relative weakness for negotiating with the EU in the future.”
Incidentally, although much needs to be done to improve Britain’s preparedness, the EU has so far only taken a few limited, temporary measures, such as issuing temporary 9 months permits for British Heavy Goods Vehicles and permitting British aeroplanes to continue flying for 6 months, said the CBI.
The EU has taken the stand that it will recognise Britain’s trusted trader scheme, a framework agreement, which it already has with the United States, Japan and Canada, and which minimises red tape.
Britain has taken the stand that it will continue to allow financial services firms from the EU to operate in Britain for a while longer before they have to apply for a new license; the EU has yet to reciprocate.
British Prime Minister Boris Johnson has taken a stand that he is ready to proceed with a no-Brexit deal but is prepared to negotiate a new Brexit deal.
According to Brussels, the Brexit deal has already been negotiated last year with former prime minister Theresa May; it is its best and only offer.
The CBI’s report is based on the feedback from thousands of firms across Britain. According to the report, 24 out of 27 sectors would face severe disruption in the event of a no-deal Brexit, in the short and long term.
The CBI’s 200 plus recommendations include improving no-deal contingency measures, such as immediately putting the civil service on a no-deal footing.
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