Brexit
The Chief Executive of EEF, the manufacturers’ organisation, has said that it is “vital” that an extension to the transition period following next year’s exit from the European Union is agreed.
Stephen Phipson CBE made the comments following last week’s failure by the Government to agree a tariff schedule at the World Trade Organisation (WTO).
He urges the Government to recognise the dangers to jobs and livelihoods that would follow the simultaneous loss of EU membership benefits whilst the country’s negotiations with the WTO are still in their infancy.
“As we have consistently said, successful international trade deals take years to negotiate,” Phipson explained.
“The Government’s hope that agreeing a tariff schedule with the WTO would be simple was naïve. At a time of rising protectionism and the return of barriers to trade it is no great surprise that other countries have refused to accept our ‘cut and paste’ short-cut.”
Phipson believes the Government has “failed to prepare adequately” for the time and complexity required to reach agreement with the WTO. He says that whilst talks continue, the industry urgently needs clarity and stability. “That means a significantly longer transition period following our exit from the EU,” he added.
The EEF believes an extension will ensure UK manufacturing can continue to operate under the EU’s existing protections, while the Government takes the time it needs to secure advantageous new trading deals with other countries.
“Many of our members have been planning on the back of repeated assurances that membership of the WTO and new trading deals with other countries would be struck quickly and easily. Now the Government must recognise that this strategy has failed and it must allow industry sufficient time to prepare for an uncertain global trading relationship. We must not give up all the benefits of the EU,” Phipson concluded.