UK urged to stay in single market until final Brexit deal as farmers' confidence drops

Farmers' confidence has been dropping amid political uncertainty...
Farmers' confidence has been dropping amid political uncertainty...

The UK is being urged to stay in the single market and customs union until a final Brexit deal has been settled, according to the CBI business group.

Head of the CBI Carolyn Fairbairn said it was "impossible to imagine" all the details of a new trade deal with the EU to be settled by March 2019.

In a lecture at the London School of Economics (LSE), she commented that uncertainty is crippling the UK's economy.

A government conference on Friday (7 July) saw a meeting with business figures from sectors across the UK.

The event, hosted at Chevening House in Kent, is part of government plans to work more closely with industries over Brexit.

'Razor-sharp'

For the agricultural industry, it has urged Brexit trade negotiators to consult with them before any negotiations are finalised to ensure agriculture is in the limelight.

The National Farmers' Union (NFU) released its report demanding 'razor-sharp political focus' at home and abroad.

The report, 'A New Outlook on International Trade', outlines the UK's £13.8bn worth of food and drink exports and how it must be protected.

The report highlights the risks and opportunities for agriculture in trade deals fundamental to the industry’s future.

'Core principles'

It lists three 'core principles' for trade.

Maintaining continued access to the EU single market with minimal tariffs and non-tariff barriers.

Basing negotiations on detailed economic assessments and consulting with the industry before offers are exchanged.

Lastly, the NFU says ensuring UK farmers are not put at a competitive disadvantage to overseas producers subject to different standards is a must.

The Scottish National Party has been one of the main political powers pledging to 'protect' the agri-food industry by fighting to stay as a member of the single market.

Knock in confidence

The NFU's core principles comes as news of survey results showing that farmers’ confidence for the next three years has taken a significant knock.

The survey shows an 18-point drop in mid-term confidence in the last two years. It says the political environment since the UK voted to leave the EU is a key driver for this fall.

To add salt to the injury, the Country Land and Business Association (CLA) has previously warned of 'catastrophe' for the rural economy unless government negotiators secure the right Brexit deal.

But the CBI head Carolyn Fairbairn said negotiators on both sides of the UK-EU talks should aim to agree transitional arrangements as soon as possible to minimise this uncertainty.

She argued that staying inside the Single Market and Customs Union until a deal is in place is the “simplest route and a common-sense solution”, giving both negotiating teams time to iron out details and instil confidence in companies across Europe.