CBI suggests European Union to prepare faster for no-deal Brexit risk
As per the CBI report, the blend of the UK and EU’s different approaches has created an imbalance.
The European Union has reportedly been less prepared for a no-deal Brexit in comparison with Britain. In case of no transition agreement and declining support from London in future trade talks, British firms can be potentially at a disadvantage, cite reliable sources.
According to the Confederation of British Industry (CBI), the EU, with the exclusion of Ireland, lags behind Britain in its no-deal arrangements in some way.
As per the CBI report, the blend of the UK and EU’s different approaches has created an imbalance. Due to this discrepancy, EU goods and services exports will have simpler entry in the UK, while the UK goods and services exports will have to face difficulty to access the EU. From the trade viewpoint, the UK has opted for more reliable approach. However, EU has also positioned the UK in a comparative disadvantage for negotiating with it in the future.
Apparently, while Britain is required to improve its preparedness, the EU has so far taken only a few temporary, limited measures, like permitting British Heavy Goods Vehicle licenses to be legal for nine months after a no-deal Brexit and allowing British airplanes to continue to fly for six months.
The CBI stated that the EU should recognize trusted trader scheme of Britain, the way it does with the U.S., Japan, and Canada to minimize red tape.
Britain has reportedly stated that it will permit financial services companies from the EU to keep operating in the country for an interval before applying for a new license, but the bloc has not reciprocated yet.
Reportedly, the CBI report is based on the feedback received from thousands of companies. The report has found that the firms in 24 out of 27 sectors in Britain will be interrupted by a no-deal Brexit in the long or short term, with smaller companies less prepared than bigger ones.
Source credit: https://in.reuters.com/article/britain-eu-economy/eu-must-move-faster-to-prepare-for-no-deal-brexit-risk-cbi-idINKCN1UO0AG
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Pankaj Singh
Pankaj Singh Develops content for Algosonline, Market Size Forecasters, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With experience in technical and niche w...