This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/politics/2019/jun/12/no-deal-brexit-will-be-commercial-suicide-manufacturers-tell-mps
The article has changed 9 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| No-deal Brexit is 'commercial suicide', manufacturers tell MPs | No-deal Brexit is 'commercial suicide', manufacturers tell MPs |
| (about 13 hours later) | |
| A no-deal Brexit would be “commercial suicide” with tens of thousands of jobs already lost in the UK because of the political uncertainty, manufacturing representatives have said. | A no-deal Brexit would be “commercial suicide” with tens of thousands of jobs already lost in the UK because of the political uncertainty, manufacturing representatives have said. |
| As Boris Johnson broke cover to launch his Conservative party leadership campaign, in which he repeated his pledge to leave the EU by 31 October, industry representatives were telling MPs that crashing out of the bloc was “economic vandalism”. | As Boris Johnson broke cover to launch his Conservative party leadership campaign, in which he repeated his pledge to leave the EU by 31 October, industry representatives were telling MPs that crashing out of the bloc was “economic vandalism”. |
| 'Brexit delay means defeat': Boris Johnson launches campaign | 'Brexit delay means defeat': Boris Johnson launches campaign |
| Seamus Nevin, the chief economist with Make UK, which represents some of the country’s largest manufacturers, said: “There is a direct link between politicians talking up the prospect of no deal and British firms losing customers overseas and British people losing jobs. | Seamus Nevin, the chief economist with Make UK, which represents some of the country’s largest manufacturers, said: “There is a direct link between politicians talking up the prospect of no deal and British firms losing customers overseas and British people losing jobs. |
| “A no-deal Brexit would be nothing short of commercial suicide.” | “A no-deal Brexit would be nothing short of commercial suicide.” |
| He told the House of Commons Brexit select committee that some businesses were already “downsizing or completely shutting down in the UK”. Some were very profitable and leaders in their sector, but were struggling because of the political uncertainty. | He told the House of Commons Brexit select committee that some businesses were already “downsizing or completely shutting down in the UK”. Some were very profitable and leaders in their sector, but were struggling because of the political uncertainty. |
| In a ‘no deal’ scenario, the UK would leave the single market and the customs union immediately with no ‘divorce’ arrangement in place. The European Court of Justice would cease to have jurisdiction over the UK, and the country would also leave various other institutions including Euratom and Europol. | |
| The UK would no longer be paying into the EU budget, nor would it hand over the £39bn divorce payment. There would be no transition period. Free movement of people into the UK from the EU27 would stop. | |
| Trade between the UK and the EU would be governed by basic WTO rules. The UK government has already indicated that it will set low or no tariffs on goods coming into the country. This would lower the price of imports - making it harder for British manufacturers to compete with foreign goods. If the UK sets the tariffs to zero on goods coming in from the EU, under WTO ‘most favoured nation’ rules it must also offer the same zero tariffs to other countries. | |
| WTO rules only cover goods - they do not apply to financial services, a significant part of the UK’s economy. Trading under WTO rules will also require border checks, which could cause delays at ports, and a severe challenge to the peace process in Ireland without alternative arrangements in place to avoid a hard border. | |
| Some ‘No Deal’ supporters have claimed that the UK can use Article 24 of the General Agreement on Tariffs and Trade (Gatt) to force the EU to accept a period of up to ten years where there are no tariffs while a free trade agreement (FTA) is negotiated. However, the UK cannot invoke Article 24 unilaterally - the EU would have to agree to it. In previous cases where the article has been used, the two sides had a deal in place, and it has never been used to replicate something of the scale and complexity of the EU and the UK’s trading relationship. | |
| Until some agreements are in place, a ‘no deal’ scenario will place extra overheads on UK businesses - for example the current government advice is that all drivers, including lorries and commercial vehicles, will require extra documentation to be able to drive in Europe after 31 October if there is no deal. Those arguing for a ‘managed’ no deal envisage that a range of smaller sector-by-sector bilateral agreements could be quickly put into place as mutual self-interest between the UK and EU to avoid introducing or rapidly remove this kind of bureaucracy. | |
| Martin Belam | |
| Nevin said he was aware of one company, which he could not name because of a confidentiality agreement, that was planning to quit Britain. “That will result in several thousand job losses,” he said adding that a no-deal Brexit “would be nothing short of an act of economic vandalism” and “undo 25 years of economic progress and consign a generation of highly skilled workers to the scrapheap”. | Nevin said he was aware of one company, which he could not name because of a confidentiality agreement, that was planning to quit Britain. “That will result in several thousand job losses,” he said adding that a no-deal Brexit “would be nothing short of an act of economic vandalism” and “undo 25 years of economic progress and consign a generation of highly skilled workers to the scrapheap”. |
| His assessment came in stark contrast to Johnson’s upbeat declaration that he would deliver Brexit and transform the UK into a powerhouse that would “go neck and neck with Germany” in manufacturing and technology. | His assessment came in stark contrast to Johnson’s upbeat declaration that he would deliver Brexit and transform the UK into a powerhouse that would “go neck and neck with Germany” in manufacturing and technology. |
| Johnson declared he would “stick up for every business in this country”. In a mixed message, however, he also declared he was not aiming for no deal while being prepared to leave the EU without a deal. “I think if we block it, we will face mortal retribution from the electorate,” he said. | Johnson declared he would “stick up for every business in this country”. In a mixed message, however, he also declared he was not aiming for no deal while being prepared to leave the EU without a deal. “I think if we block it, we will face mortal retribution from the electorate,” he said. |
| Businesses told MPs that a Halloween Brexit would be a disaster. | Businesses told MPs that a Halloween Brexit would be a disaster. |
| Tim Rycroft, the chief operating officer with the Food and Drink Federation, said shortages of food would begin to appear within two weeks of a no-deal Brexit. | Tim Rycroft, the chief operating officer with the Food and Drink Federation, said shortages of food would begin to appear within two weeks of a no-deal Brexit. |
| Fresh fruit and vegetables would be held up on the Calais-Dover journey because of mandatory food health checks, but so too would processed chicken originating in the UK, he said. “We produce a lot of chicken but they are sent to [the] EU for processing and then re-imported.” | Fresh fruit and vegetables would be held up on the Calais-Dover journey because of mandatory food health checks, but so too would processed chicken originating in the UK, he said. “We produce a lot of chicken but they are sent to [the] EU for processing and then re-imported.” |
| Boris Johnson Brexit plan difficult or impossible, says Philip Hammond | Boris Johnson Brexit plan difficult or impossible, says Philip Hammond |
| Rycroft said bread and confectionery were other foodstuffs that would be affected, as the UK did not produce enough dried milk or high-protein wheat. He said: “We will see selective shortages and probably unpredictably and that might go on for several weeks and potentially months after a no-deal exit.” | Rycroft said bread and confectionery were other foodstuffs that would be affected, as the UK did not produce enough dried milk or high-protein wheat. He said: “We will see selective shortages and probably unpredictably and that might go on for several weeks and potentially months after a no-deal exit.” |
| Nevin also challenged claims that the port of Calais would be able to deliver a frictionless Brexit in the event of a crash-out. | Nevin also challenged claims that the port of Calais would be able to deliver a frictionless Brexit in the event of a crash-out. |
| He told MPs the port had done a trial of sanitary and phytosanitary tests that would be mandatory on the EU side and this had led to long delays. | He told MPs the port had done a trial of sanitary and phytosanitary tests that would be mandatory on the EU side and this had led to long delays. |
| The Democratic Unionist party MP for east Antrim, Sammy Wilson, put it to him that the port of Calais had said it would be ready for no deal. | The Democratic Unionist party MP for east Antrim, Sammy Wilson, put it to him that the port of Calais had said it would be ready for no deal. |
| Wilson asked Nevin: “So the assurances given by the mayor of Calais are not true?” “That’s correct,” Nevin replied. | Wilson asked Nevin: “So the assurances given by the mayor of Calais are not true?” “That’s correct,” Nevin replied. |
| Brexit | Brexit |
| Manufacturing sector | Manufacturing sector |
| House of Commons | House of Commons |
| news | news |
| Share on Facebook | Share on Facebook |
| Share on Twitter | Share on Twitter |
| Share via Email | Share via Email |
| Share on LinkedIn | Share on LinkedIn |
| Share on Pinterest | Share on Pinterest |
| Share on WhatsApp | Share on WhatsApp |
| Share on Messenger | Share on Messenger |
| Reuse this content | Reuse this content |