EU and international briefing

Last week signalled the start of the bumpy autumn that had been long predicted. In a dramatic few days in parliament, the government has lost five votes, including – significantly – having been temporarily denied the general election it wanted. The government also lost its parliamentary majority and two ministers attending cabinet – including the Prime Minister’s own brother. However, it was not all bad news for the government as polls seemed to have remained positive for them, and they saw off several court cases challenging the legitimacy of the decision to prorogue parliament.

The most significant news for business in the last week is that parliament has ordered the government to seek a third extension of Article 50, to avoid no deal on 31 October. Nevertheless, this extension cannot be guaranteed and businesses should be braced for all possibilities in the weeks ahead – including the worst case scenario of no deal.

Last night, parliament was prorogued until the middle of October and the party conference season began, starting with the newly invigorated Liberal Democrat fightback in Bournemouth. In theory, prorogation and the conference season kicking in should lead to less chaotic days in the weeks ahead of us, as parliamentary drama is paused. Nevertheless, with a general election on the horizon, most likely for November, it is likely to remain politically noisy in the weeks ahead.

Read more of the latest CBI insight on the latest political developments.

The CBI has been working hard, in contact with all groups in parliament and beyond. That includes in Ireland, where Carolyn Fairbairn met with and spoke alongside the Taoiseach Leo Varadkar about the vital importance of a deal for Northern Ireland.

Read more from Carolyn’s speech

The CBI also continues to be active on international trade. Deputy Director-General, Josh Hardie, and Director of International Trade, Ben Digby, joined a number of CBI members to listen to US Vice-President Pence make the case for a future Trans-Atlantic Trade Deal in London last week. A CBI delegation are in Mexico lobbying for the roll over the provisions of the UK’s existing trade deal. Preserving trade deals the UK already has remains one of CBI members’ biggest priority for international trade, and the CBI is working hard to support those efforts.

Recent engagements

CBI Director-General Carolyn Fairbairn met with:

• Sir Tim Barrow, Permanent Representative of the United Kingdom to the European Union, Charles Roxburgh, Second Permanent Secretary to HM Treasury, and the Taoiseach, Leo Varadkar, in Ireland at the British-Irish Chamber of Commerce dinner. Take a look at the coverage on Twitter and in the press.
• Stéphanie Riso, Acting Deputy Chief Brexit Negotiator, in the lead up to the October European Council and ongoing EU negotiations.
• Secretary of State for International Trade, Liz Truss, and attended the second meeting of the Strategic Trade Advisory Group with new Trade Minister, Conor Burns.

In our international offices:

• John Dickerman, Head of the CBI’s Washington Office met with the Director-General for Bilateral Economic Relations in the Mexican Government to lobby on roll over the UK’s existing trade relationship with Mexico.
• In China, Guy Dru Dury, Head of the CBI’s Beijing Office, visited Thailand to promote further business opportunities for the UK in Asean.

Josh Hardie, Deputy Director-General, and Ben Digby, CBI International Director, attended a dinner with Mike Pence, US Vice-President.