EU and international briefing

With 31 October fast approaching, the CBI is doing everything it can to help get your business ready for no deal. Our updated no deal preparations hub, is packed with extra resources, so you can easily access our advice on everything from customs to data flows. This resource is available to all businesses – including non members, please feel free to share the link with your customers and supply chain.

In the latest sign of increased pace in no deal preparations, government published its proposed no deal tariffs on 8 October.

At the end of the Conservative party conference, we saw the unveiling of Boris Johnson’s ‘fair and reasonable compromise’ on the Irish backstop. We delve into this further with our new explainer on five questions your business may have about the latest Northern Ireland proposals.

The announcement signalled the end of the diplomatic dance between the UK and the EU and the beginning of formalised negotiations. There are hints in the letter from the Prime Minster of compromise and flexibility, however the EU’s reaction over the past few days has shown that there are still issues for them within parts of the proposal. So the chances of a breakthrough remains marginal, but there is a proposal on the table.

It was also revealed that the Prime Minister will send a letter to the EU asking for a Brexit delay if no deal is agreed by 19 October. Shortly after, Downing Street stated that the UK will be leaving the EU on 31 October. The outcome of this remains unclear; and with no legal precedent and no knowledge of the government strategy, we will continue to keep members updated as things unfold.

The big event on the global trade front was the announcement by the US Trade Representative that the US would impose punitive tariffs on a range of EU goods from 18 October, following a WTO ruling on a long running dispute about subsidies to aviation. A detailed list of UK goods that could be affected can be found here. The CBI is in touch with authorities in Brussels, Washington and London to argue that all sides need to show restraint.

Recent engagement

• CBI Director-General, Dame Carolyn Fairbairn, met with Jo Swinson MP, Leader of the Liberal Democrats, and attended a roundtable with Business Secretary, Andrea Leadsom
• At the end of September, the Brussels team held a Brussels Club Roundtable with Ambassador Kim Jørgensen, Danish Permanent Representative to the EU
• CBI’s Chief Economist, Rain Newton-Smith, attended a roundtable with Chancellor, Sajid Javid, and Financial Secretary, Jesse Norman MP
• CBI Director for International Trade and Investment Ben Digby visited Ottawa and Washington, D.C. (from 30 Sept-3 October) to meet with members and government officials to hear the latest first-hand perspectives on Brexit and transatlantic trade from the other side of the pond, including on proposed retaliatory tariffs.