Failure to reach a Brexit deal would wreak havoc on British business, especially manufacturers that rely on just-in-time supply chains, in the view of Business Minister Richard Harrington.
“It would be completely disastrous for business in this country,”Harrington said. Four months after Prime Minister Theresa May outlined her vision for Britain’s future economic relationship with the European Union, “It’s quite right that business should be thinking well what’s happening now,” he said.
With Brexit day less than nine months away, Britain and the EU have yet to begin substantive negotiations on the shape of their future trade relationship amid Tory divisions over customs arrangements and how to maintain an open border between Ireland and Northern Ireland. May has convened a meeting of her top ministers for Friday at her country residence to thrash out a path forward.[...]
What Advantage?
“There are parts that go on Minis that have been in and out of the country seven times before being assembled on a Mini,” Harrington said. “And the vast majority of the products are exported to the European Union. It’s very hard to see the advantage to businesses like that of us crashing out of the European Union.”
Some form of mutual recognition of regulations between the EU and U.K. is essential, so as not to damage industries including pharmaceuticals, carmakers, and aerospace, he said.
“It’s very difficult to see how multinationals could continue” in Britain if they had to comply with two separate regulatory regimes in order to keep exporting to the EU while servicing the domestic market, he said. [...]
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