UK must remain at the EU table

The UK must “carve out” a new global trading role for itself given the changing state of the European Union, CBI’s John Cridland stresses.

In his New Year message, the director general of the business organisation said it was vital the UK remained at the EU table, “banging the drum for its national interest”, and suggested an EU-US free trade agreement could be the key to long-term UK growth.

Mr Cridland urged politicians on both side of the Atlantic to “seize the moment” during the first 100 days of President Obama’s second term to create a long-lasting economic legacy.

He said: “President Obama and the EU’s political leaders need to grab the bull by the horns. We need to be mature and resist the siren calls of protectionism and look long-term. The best way of creating jobs, promoting investment and stimulating growth is by eliminating the tariffs and harmonising the regulation which holds back businesses on both sides of the Atlantic.

“Business leaders want to see real urgency on this in the first 100 days of Obama’s second term. We don’t want to turn around in four or five years’ time and regret not seizing this massive opportunity.

“We can’t beat around the bush – we pack a bigger punch in securing trade deals inside the EU than outside. The US wants the big prize - access to a market of 500 million customers across the EU, not just 60 million on our own shores. So the best way of getting the right deal for the UK is on an EU-wide basis. The EU must be the launchpad for UK business to trade with the rest of the world, carving out a new global role for ourselves.”

Bdaily recently heard from Business Secretary Vince Cable, who suggested there was appetite in France, at least, to open up free trade with the US.

The CBI say such a deal would eliminate tariffs, liberalise goods and services, harmonise regulation, promote investment and set benchmark standards for trade in the 21st century.

Mr Cridland pointed specifically to opportunities in the financial, professional services, pharmaceutical and creative industries sector exports.

A number of obstacles to trade have been identified by the CBI, they include customs duties paid by the chemicals industry; processes and costs facing logistics firms; as well as tariff costs and mismatched regulations.

Overall, Mr Cridland acknowledged the Eurozone crisis highlighted the need for huge structural reforms, but warned about “throwing the baby out with the bathwater.”

He added: “We need to recognise and adapt to the realities of the multi-speed Europe which is emerging. The fallout in the Eurozone from the debt crisis is not just forcing through rapid political and financial integration. It is also forcing all countries to fundamentally rethink the EU’s wider purpose and deal urgently with the sort of structural flaws Europe has ignored for decades.

“We must tread very carefully though. The debate about our future in Europe in 2013 must be based on an informed, hard-headed analysis of where our long-term economic and financial interests lie and business will need to make its voice heard.

“We need global trade deals to drive growth and create jobs, especially when the domestic economy is growing more slowly than required. Businesses don’t want the baby thrown out with the bathwater – not with 50% of our exports heading to Europe.

“The UK has ensured its values of free and open trade have been at the heart of Europe over the last 40 years, helping to create one of the biggest successes of the European Union – the Single Market. It’s essential we stay at the table to bang the drum for businesses and defend our national interest, particularly protecting our world-class financial services industry to maintain our competitiveness internationally.”

This was posted in Bdaily's Members' News section by Tom Keighley .