The International Chamber of Commerce calls for the closest possible relationship between the UK and European Union
London, 7 November 2018
With the date for the UK to leave the European Union just months away, the International Chamber of Commerce (ICC) restates its position that the UK should seek the closest possible trading relationship with the EU to keep cross border trade as frictionless as possible. In ICC’s view, this should mean staying with the Customs Union - and preferably the Single Market – for a transition period long-enough to manage the significant complexity of leaving the EU after 45 years and the world’s largest single market.
ICC believes this will require a 5-10 year transition period to minimise disruption in the UK, EU and the global trading system more broadly. Such an outcome would represent a win-win for both the UK and EU – and would provide much needed certainty for companies of all sizes trading internationally.
"The EU has 52 trade agreements covering over 70 countries and with economies as diverse as South Korea, Canada and Chile – and most recently Japan," says Sir Michael Rake, Chairman of ICC United Kingdom. "These are hugely complex agreements that each take five-seven years on average to negotiate and cannot be quickly replicated. It is therefore incumbent upon the UK government to be responsible and minimise the damage to businesses within the UK, the EU and those countries trading through the UK into the EU. And that means maintaining our position within the Customs Union and possibly the Single Market for a period long-enough to allow the agreements to be renegotiated. This period is certainly not shorter than five years and could be as long as 10 years."
“If the UK leaves the EU in a ‘hard’ Brexit scenario, with only World Trade Organisation rules to fall back on, the disruption to the UK's reputation and trading position could be potentially very damaging. It’s not in anyone’s interests for this to happen. In such a scenario, the only practical and responsible solution at this late stage in the negotiations is an extended transition within the Customs Union and the Single Market."
ICC Editor’s Note
ICC is the largest world business organisation representing over 45 million companies in over 100 countries. ICC United Kingdom represents the voice of UK business at inter-governmental level and the voice of ICC in the UK. ICC’s core mission is to make business work for everyone, every day, everywhere.
The UK-EU trade corridor is one of the most sophisticated in world trade having been built-up over 40 years. The EU is the UK’s largest trading partner with exports of £274 billion in 2017 (44% of all UK exports - 54% if including all countries with an EU trade agreement) with UK imports from the EU valued at £341 billion in 2017 (53% of all UK imports). With well over half a trillion pounds of trade at stake – and the jobs, investment and prosperity such a figure represents – ICC’s position is driven by the practical need to minimise the disruption inherent within the Brexit process.
Press & Communications | ICC United Kingdom
Tel: + 44 (0) 20 7377 4999
www.iccwbo.uk / email@example.com
Leave a comment
Comments will be approved before showing up.
Also in Press releases
Handing over to the next generation: John Beechey CBE steps down as Chair of ICC’s Arbitration programme and hands over leadership to Ania Farren, Managing Director at Vannin Capital.
John Beechey, one of the biggest names in international arbitration and former President of the ICC International Court of Arbitration, is retiring from his position as Chair of the International Chamber of Commerce's (ICC's) Arbitration programme in the UK, passing the torch on to his successor, Ania Farren, Managing Director of Vannin Capital. Ania will take up the reins, supported by Iain Quirk from Essex Court Chambers and Guy Pendell from CMS, whom we welcome as a new Vice Chair in the UK leadership team.
London, 19 February 2019
ICC United Kingdom and The London Institute of Banking & Finance are pleased to announce their exclusive partnership for 2019, with the aim of endorsing skills pathways in trade finance education. Promoting specific trade finance skills is becoming increasingly important in protecting the future of trade finance, as more focus is needed to enhance the workforce that will ultimately be involved in the move towards paperless trade – a critical transformation period.