CBA SUPPORTS LETTER TO PRIME MINISTER
2 July 2020
2 July 2020
MANUFACTURERS AND ENTREPRENEURS URGE GOVERNMENT TO SECURE STRONG DEAL WITH EU
An alliance of the trade associations, entrepreneur’s and small businesses representing over 20,000 people across the UK are calling on Prime Minister Boris Johnson to avoid no deal or a bad deal in negotiations with the EU, and instead focus on securing the best possible trading arrangements to fight the pandemic and secure the economic recovery.
The Chemicals Business Association, Manufacturing Technology Association, and 100’s of entrepreneurs and small to medium sized firms have written directly to the PM to urge much closer collaboration with the EU.
Today marks the point of no return for needing to agree an EU trade deal and prepare the country for that deal by the end of this year. The business alliance warns that the PM has taken a huge gamble with the coronavirus pandemic having created an enormous economic shock across the UK and around the world.
Highlighting the Government’s own analysis suggesting that the downside of a no-deal exit, compared to continuing with current arrangements, would be approximately 8% of GDP in 15 years time, businesses are calling for a reset in the tone and transparency of the negotiations in the remaining six months.
The letter calls for the PM to ensure that the UK achieves the best possible trading arrangements with the EU and other countries. Specifically, it calls for these trading arrangements to uphold the common high standards currently applicable on both sides in the areas of state aid, social and employment standards, environment, climate change and tax.
Critically the businesses, most of whom are on the front line of trading with the EU, call for continued alignment with EU regulatory bodies that allow free flow of products in such areas as pharmaceutical, medical, and chemical supplies to keep non-tariff barriers to a minimum. They are also calling for assurance of an equivalence agreement with the EU for financial services that is broader than the traditional arrangements and provides greater certainty.
Juergen Maier, former CEO of Siemens UK commented “This call for needing a close relationship and deal with the EU comes at a critical moment of a transition extension being ruled out and business focused on recovering from Covid. This is not a call to reopen old divisions about remaining or leaving. What we now need is a common sense approach to our relationship with the EU. The Government must now deliver for us all, and on their promise to get a good deal, not a bad deal and definitely not a no deal”
Peter Newport, CEO of the Chemical Business Association said ”A smooth flow of chemical industry products is critical for the economy to recover post Covid. They are the foundation of most industries. A good EU trade deal with close alignment on chemical regulation and standards is the only way to avoid chemical supply chain disruption and have a negative impact on our economy”
James Selka, CEO of the Manufacturing Technology Association added ”Manufacturers are by definition the innovators and traders of our economy. Supply chains are very integrated across the EU, thanks to the free movement of products facilitated by the single market over four decades. Any disruption caused due to non-tariff barriers caused by a bad EU trade deal will disrupt our businesses significantly at a time when we can least afford this”
Notes to Editors
Letter and full list of business signatures
Dear Prime Minister,
Today marks the point of no return for needing to agree an EU trade deal and prepare the country for that by the end of this year. That focuses the mind, and we assume that is your hope, to put pressure on such a deal being found.
It is however also a huge gamble. With the coronavirus pandemic having created an enormous economic shock across the UK and around the world. With just six months to go, to the end of the Brexit transition period in December, a no-deal outcome would be hugely
damaging to the UK economy. Resulting in more people out of work and lower living standards.
The Government’s own analysis suggests that the downside of a no-deal exit, compared to continuing with our current arrangements, would be approximately 8% of GDP in 15 years’time – perhaps more. We are now witnessing increasing global trade tensions, and a sharp focus on localising of supply chains, that will make promised trade with the USA, China and others more difficult. This will make even the most optimistic upside from global trade of 0.7% of GDP in 15 years less likely.
To minimise the downsides, it is vital that the UK achieves the best possible trading arrangements with the EU and other countries. We are calling for these trading arrangements to uphold the common high standards currently applicable on both sides in the areas of state aid, social and employment standards, environment, climate change and tax.
Continued alignment with the key EU regulatory bodies that allow free flow of products in such areas as pharmaceutical, medical, and chemical supplies is also essential to keep non-tariff barriers to a minimum. The UK’s financial services businesses also urgently need assurance of an equivalence agreement with the EU that is broader than the traditional arrangements and gives them much greater certainty.
In addition, businesses simply do not have time or capacity to prepare for big changes in trading rules by the end of the year – especially given that we are already grappling with the upheaval caused by coronavirus. Securing deals that match the current arrangements as closely as possible is therefore even more essential to make those adjustments easier. We are therefore calling on you to ensure full transparency over the substance of these negotiations and these deals, to enable proper assessment of the potential economic consequences and through that assure us that the economic downside on our businesses can be minimised.
If, despite the warnings from business and others, the Government pushes ahead with no-deal or a bad deal at the end this year, it will create a further economic shock and cost people’s jobs, which we desperately want to avoid, especially at this point when our businesses need to be focused on recovering from the coronavirus crisis.
Signed by 110 small to medium sized businesses, entrepreneurs and business associations with significant experience of trading with the EU. We are all proud to create significant value for the UK economy and our interest is to continue doing so
|New England Seafood International
|Cavagna Group UK Ltd
|Precision Technologies Group (PTG) Limited
|Paragon Inks (Holdings) Ltd.
|BGS International Limited
|Argus Media Group
|Chairman & Chief Executive
|German British Forum
|Pentagon Sports (Cheshire) ltd
|British Coatings Federation
|Breeze & Associates Ltd
|Neill & Brown Global Logistics Group Ltd
|Biesse Group UK Limited.
|Yamazaki Mazak UK Ltd
|Butlers of Kent
|The White Sea & Baltic Company Ltd
|Founder & CEO
|Richard Baker Harrison Ltd
|Centre Colours Ltd
|Sir Cary L.
|signing in personal capacity
|James Lister and Sons Limited
|Abrasive Finishing Systems Ltd
|Haynes and Boone LLP London
|British Compressed Gases Association (BCGA)
|Quick Grind Limited
|The eXcelelnce GROUP
|North West Business Leadership Team
|Founder and former CEO
|Butcher’s Pet Care Ltd
|Vickers Laboratories Ltd
|Hd of Events & Members Services
|SPARKFORD Chemicals Ltd
|Mills CNC Ltd
|Stort Chemicals Ltd
|Adams Aviation Supply Co Ltd
|Gelpke & Bate Ltd
|Old Game New Rules
|Advanced Grinding Supplies Limited
|Sawcraft UK Ltd.
|IFRAUK (Trade Association
|Navigator Terminals UK Limited
|Western AS Ltd
|TAMS UK LTD
|Citizen Machinery UK Limited
|SCHÜTZ (UK) Ltd
|Fujichem Sonneborn Limited
|Phase 3 CNC / Spindle Revolution Ltd
|The Food Awards Company
|2M Holdings Ltd
|Chairman & CEO
|Dakram Materials Ltd
|Sales & Quality Assurance
|Cantab Capital Partners
|Founder and CIO
|Natchemco UK Ltd.
|Think Publishing and & Wanderlust Publications
|4160 Tuesdays Ltd
|Executive Director, Ops
|Heller Machine Tools UK
|Dakram Materials Ltd
|Episode 1 Ventures
|Chemical Business Organisation
|Michael O’Mara Books
|Founder and Chair
|Supply Point Systems Ltd,
|Signing in personal capacity
|Company Founder and Director
|Cornelius Group plc
|Former joint head of the government economic service
|H S Richards Ltd
|Fronius UK Ltd
|The One Leadership Project
|Starrag UK Ltd.
|Seager Publishing Ltd
|Manufacturing Technologies Association
|signing in personal capacity
|A-Gas Electronic Materials
|Nosh Detox Delivery Ltd
|Kalsec Europe Limited.
|New Covent Garden Soup Co & Little Dish
|Safapac Holdings Ltd
|Valo Therapeutics Ltd
|Meade-King, Robinson & Co. Ltd
|Siegwerk (UK) Ltd
|Sales Manager UK & IRL
|Chantry Chemicals Ltd
|Business Ops Director
|Star Micronics GB Limited
|INX International UK Ltd.
|Kasto Limited UK
|Ostling Etchmark Ltd
|LIVE IT Group Ltd
|ICW (UK) LTD
|Reliance Precision Ltd
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