CBI engagements ahead of UK-EU negotiations

This week (commencing 1 June), UK and EU negotiators will be dialling into virtual talks to try and break the current impasse. While businesses on both sides of the Channel face unrelenting stress from COVID-19, these talks have been out of sight, though not quite out of mind. 

Ahead of the June round of EU negotiations, the CBI has been engaging with EU counterparts including Sir Tim Barrow, UK Ambassador to the EU, and separately with Clara Alberola-Martinez, Deputy Head of the EU-UK Taskforce.  

Emphasising the need for progress  

During these meetings, CBI Director General, Carolyn Fairbairn, has highlighted business concern that limited progress has been made to date and with firms focusing on the impact of COVID-19, they do not have the time or the resources to devote to Brexit-related issues. 

Further to these meetings, Carolyn joined a BusinessEurope call with Michel Barnier, the European Commission's Head of Task Force for Relations with the United Kingdom, where the discussion focused on the upcoming round of EU Negotiations. Mr Barnier expressed frustration with the lack of progress made so far. This includes some of the major remaining issues surrounding a level playing field, fisheries and judicial oversight, and he went on to emphasise the EU’s openness to an extension.  

The time needed for businesses to prepare was central to much of the discussion, especially if no deal can be agreed between the UK and EU. Depending upon how things unfold in the coming weeks, firms – many of which are stretched to breaking point - may need to intensify their work on contingency planning.  

Responding to the impact of COVID-19 and the future UK-EU trade agreement

Following the CBI’s recent engagement and consultation with members, the CBI has voiced business concerns that responding to COVID-19 and preparing for a potentially chaotic change in EU trading relations in seven months’ time, is beyond what firms can handle.   

Writing for Politico, Carolyn went on to highlight that firms are not remotely prepared and when faced with the desperate challenges of the pandemic, their resilience and ability to cope is almost zero. From speaking to many businesses across the country, the CBI knows that smaller firms especially, have burned through cash reserves. Many are asking whether they should prepare for a no deal Brexit and how this can possibly be a sensible use of their stretched resources. 

Read the full Politico article here 

Ultimately, people’s livelihoods and businesses are at stake and a good deal with the EU will be just one strand of a national recovery plan from the coronavirus pandemic. But it will be one of the most important for the future of our economy, jobs and livelihoods. 

Calling for progress and political dynamism 

There are just seven months left to negotiate the UK/EU Future Trade Agreement and the UK government has stated that it will not extend the transition period beyond 31 December 2020. This, coupled with the deadline to request an extension by 30 June, means that over the coming weeks the CBI will be calling for progress, not least on data, fishing, and financial services.  

Further to this, the CBI will be highlighting the need for new political dynamism on both sides to reach a deal and protect the economy and emphasising that a good deal with the EU will support the future of the UK economy, jobs and livelihoods.