Responding to the European Commission’s publication of draft negotiating directives for transition, the Institute of Directors is urging both sides to move quickly on to discussing the future trade relationship, alongside the interim period.
Allie Renison, Head of Europe and Trade Policy at the IoD, said: “While business leaders have long made clear their desire to get early agreement on transition, the hard deadline put forward by the Commission underlines the need for a parallel discussion on our future trade partnership with the EU.
“Currently, the Government has proposed two options for a customs agreement with the EU – one of which HMRC has been repeatedly clear will take at least five years to implement. This would obviously take us past the end of 2020 which the Commission has marked out as the end date for the implementation period.
“Businesses will need a minimum period of adjustment once the full trade negotiations have been completed after we leave the EU. So it is essential for that the Government further clarifies its proposals for our new economic partnership with the EU and that both sides move quickly on to negotiating the framework for future relations. Otherwise, the deadline being proposed by the Commission will sow confusion and chaos all round.”