Manufacturing & Supply Chain

The UK and EU have struck a new deal to help reduce some of the post-Brexit barriers to trade. Though access to passport e-gates for British holidaymakers and UK fishing waters for EU boats are two of the more contentious issues to be addressed by the deal, importantly for manufacturers, there are new agreements around defence, food goods and standards, carbon taxes and youth mobility, according to Make UK, the manufacturers’ organisation.

Stephen Phipson, Chief Executive of Make UK.

Make UK CEO Stephen Phipson CBE commented: “We welcome the Government’s energy and bravery in seeking to support British industry and jobs by taking this pragmatic approach to improving relations with the EU, still our largest trading partner. The formal UK-EU defence and security pact will allow for closer co-operation and information sharing, while paving the way for UK-based firms to access the Security Action for Europe (Safe) which provides loans for defence projects.

“Removing trade frictions on GB food imports and exports is a priority and will help bring an end to the spectre of food exports bound for the EU lying rotting in British ports while awaiting customs clearance. And confirmation that the UK and EU will look to strengthen and co-operate on food standards (SPS) arrangements will bring much needed clarity to the sector.

“The agreement that the UK and EU will link their carbon markets to avoid taxes on carbon-intensive goods like steel and cement travelling between the UK and EU is also welcome news as is the proposed Youth Mobility Scheme, which will allow young talent to flow between the UK and the EU once again.

“We urge Government to continue this good work and make this first UK-EU political summit of this new Government just the beginning in further refinements of future trading arrangements so trade and growth prospects can continue to be improved for companies on both sides of the Channel.”