Your monthly update from the UK and International Competitiveness teams at the CBI.
The CBI is engaging with Government on the UK-EU Reset
Since coming to power the new government has repeatedly stated that it intends to reset the UK’s relationship with the EU to improve trade, security and defence co-operation. Nick Thomas-Symonds, Minister for the Constitution and Relations with the EU, will play a central role in co-ordinating the UK government’s strategy on how to improve the relationship in line with their manifesto pledges. The Prime Minister will also chair an EU Committee which will bring together the Chancellor and other key Secretaries of State and Ministers to flesh out key priorities – the first meeting of this new Committee took place on 9 September.
The CBI has been in discussions with Ministers and senior civil servants on what issues could be addressed to help reduce the friction between the UK and EU, with business highlighting regulatory co-operation, mobility - particularly business travel - and mutual recognition of both professional qualifications and conformity assessment as key issues.
Much can be done to improve this within the current remit of the Trade and Cooperation Agreement EU-UK (TCA) if the political will is there on both sides and we shouldn’t wait until the technical review of TCA implementation in 2025/26. The new government has also stated that it would seek to negotiate a bespoke SPS/Veterinary Agreement with the EU but any such agreement would need to work for all sectors, regions and nations of the UK. On the EU side, it is clear that Youth Mobility and Fisheries are of major interest from their side but with the new Commission unlikely to take up office until November at the earliest, any such reset will not start in earnest until 2025.
That said, the autumn will be a critical period: New Windsor Framework requirements, the third phase of the Border Target Operating Model and the EU Entry/Exit Scheme will all enter into force, placing additional administrative burdens and costs on business.
The CBI would very much like to hear from members on the key issues they would like the UK government to take forward as part of the reset. Get in touch to share your views.
