EU and International Update

Writing in the Times last week, CBI acting Director-General Josh Hardie stressed the urgency of agreeing to a deal at the earliest opportunity. Firms have been working hard during the pandemic to prepare for the end of the transition period on 31 December, but many business-critical issues remain unresolved. It is time for the political and economic timetables to converge. Businesses have made significant efforts to prepare, but many have gone as far as they can without the clarity and guidance that a deal will bring. A deal will help investment by removing the threat of tariffs and quotas and catalyse confidence through enhanced customs cooperation while making data adequacy possible. The clarity that comes with a deal will have an instant impact on firms’ efforts to prepare. 

The CBI understands waiting for the outcome of the negotiations is difficult for businesses, but there are actions that business can take today to prepare for the end of the transition period. To help firms prepare, the CBI UK Transition Hub has practical resources, designed to help businesses of every shape and size prepare for the end of transition, which is being kept up to date as new information is published. 

There are now just five weeks left before the UK exits the transition period, which will end on 31 December, deal, or no deal. At this critical moment, the CBI is working closely with government to reduce the cliff edge for businesses. The CBI holds a permanent seat at the government’s weekly Brexit Business Taskforce meetings, which are chaired by Michael Gove. The taskforce provides an opportunity for businesses to feed in the challenges and concerns directly into senior figures working on Brexit in the Cabinet Office. As always, hearing from members is vital as we have these conversations with government, so please continue to share your concerns directly so the CBI can continue to highlight them. 

International Trade 

Looking further afield there was good news over the weekend with the Canada rollover deal being secured. The agreement is close to full replication of CETA and negotiations will start in 2021 to strike a bespoke UK-Canada FTA. The CBI had been a strong advocate of securing the deal, meeting with the Canadian High Commissioner and senior DIT officials in the last fortnight. Staying in North America, President-Elect Biden continues to form his top team and the CBI Washington office is building relationships with key members of the transition team.  

Moving over to India, the CBI India team launched the ‘Sterling access’ report  on 11 November, in collaboration with Ernst and Young. The report tackles big questions on how we can improve market access into the Indian market for UK business, taking a state-by-state approach to break down trade barriers.  

In the UK, the government published its long-delayed National Security and Investment Bill, which could substantially increase mandatory notification requirements across a range of sectors. The CBI is already in touch with BEIS to raise member concerns around clarity and scope. As ever, get in touch with the team to discuss global trade issues. 

Upcoming Events

Join us for the final Government Affairs Network of 2020. Understand how your business can plan for Brexit changes and unpack what this year in politics means for business planning in 2021.  

Register for a DIT briefing on changes to global trade from 1 January, including continuity agreements, the UK Global Tariff, and the UK’s GSP.  

Get Involved

How is Brexit uncertainty impacting your business? Want to share how you’re being affected by Brexit? The CBI is constantly communicating the latest insight to the highest levels of government and is actively influencing the government’s preparations. Get in touch to share what you’re experiencing and what you want to see done about it. 

Help develop CBI positioning on CPTPP: The government is pressing ahead with plans to agree to the trade agreement covering 11 countries, and the CBI wants to hear from members about where the opportunities lie, and where carveouts may be needed. 

Insight and Analysis

From the desk of Josh Hardie: The acting CBI Director-General examines the outstanding issues facing business. 

CE markings: what your business needs to prepare for: Firms still have time to prepare for some rules on product marking throughout 2021, including replacing CE marks with new UKCA markings. 

The SME perspective: Brexit preparedness: Preparing for Brexit is a key concern for SME’s; the CBI has been hearing their main concerns and what actions some members are taking. 

Preparing for the end of transition – spotlight on services: Recorded 23 November, this session focuses on services and the end of the UK's transition period with the EU.