Protecting British manufacturing critical to ensuring post-Brexit industrial success
SUPPORTING and protecting British manufacturing will be critical to ensuring a successful post-Brexit industrial strategy, a new report has said.
The report – Britain and the EU: manufacturing an orderly exit – has been prepared by EEF and Squire Patton Boggs and points to new findings showing that just 5% of British adults think that loss or damage to the UK manufacturing sector is a price worth paying for leaving the EU.
And, while acknowledging that the Government faces a difficult balancing act between free trade and controlling the movement of workers, it warns against rushing through a ‘clumsy’ Brexit plan that could do lasting damage to UK manufacturing and the wider economy.
Instead, it is urging the Government to hold its nerve and deliver a carefully-engineered Brexit that supports investment, ensures business certainty and allows manufacturers to play a full and unfettered role in helping the UK achieve post-EU economic and global trading success.
Key to this is for the UK to negotiate a bespoke deal – as opposed to agreeing to an existing off-the-shelf model (such as the Norway or Swiss models) – which specifically addresses the UK’s needs and recognises the ‘special relationship’ the UK has with the EU.
Essential to this is the need to address the uncertainty around the Customs Union. The report says a solution should be sought that enables manufacturers to continue to trade freely with the EU, without significant burden, while also pursuing ambitious international trade deals with countries outside the EU.
The overwhelming majority (84%) of manufacturers export to the EU, while almost three quarters of firms (74%) say that a 10% tariff on exports to the EU would have a negative impact on their business.
This makes it critical that Brexit negotiations deliver ongoing unrestricted access to this key market, says the manufacturing organisation.
Richard Halstead, Midlands and East Region Director at EEF, said: “Rushing through a clumsy Brexit is not in the interests of our sector or the wider UK economy. The Prime Minister is right to hold her nerve and to allow adequate time for the UK’s negotiation strategy to be developed in close consultation with business to ensure the UK’s long-term economic interests are not harmed.
“Manufacturers see great opportunity for jobs, growth and wealth generation from the expansion of global trade outside of the EU. These ambitions tally with those of the Government and the voting public, who want to see post-Brexit Britain exporting and manufacturing more, as well as achieving a better balanced economy. At the same time, our report identifies concerns that our sector’s future success and ability to play its full part could be damaged if the UK fails to secure the right deal.”
Simon Garbett, the Birmingham-based manufacturing partner at Squire Patton Boggs, added: “Brexit undoubtedly presents an exciting opportunity to ramp up exports in new goods and technologies, as well as actively embrace the opportunities and challenges presented by Industrie 4.0 and the internet of things. All of these regional businesses, stakeholders and sector experts need to have a voice in any consultation.”
