The UK’s current trade deal with the EU is not working and the country must stop “walking on eggshells” around the issue of building closer ties with its biggest trading partner, the director general of the British Chambers of Commerce (BCC) is expected to say.
At the annual BCC global conference in London on Thursday, Shevaun Haviland will say that the UK must forge closer ties with the EU and the next government should focus on improving trading relations to grow the economy.
“We must stop walking on eggshells and start saying it how it is,” Haviland will say.
“The current plan isn’t working for our members. But better trade terms are possible if the UK government and the EU reach agreement in areas of mutual benefit for business on both sides. A better deal is best for everyone.”
The intervention comes amid an election campaign where the two main political parties have largely stayed clear of the Brexit debate. Labour and the Conservatives have been criticised for their reluctance to discuss how successful Brexit has been and future policies towards the EU.
In an interview earlier this month, Keir Starmer had to deny that he was scared of talking about the issue, instead saying he was determined to build a “closer, better” relationship with the EU and improve Boris Johnson’s “botched deal”.
Businesses have criticised the additional red tape and increased costs that Brexit has heaped on to firms importing and exporting goods to and from the continent.
Importers of food and plants have been hit by charges associated with new Brexit border checks brought in at the end of April, with some logistics companies saying the changes have added up to 60% to transport costs.
Other businesses have complained that the increasing divergence on standards, such as those around construction products, has made it more expensive for UK companies to get their products certified for sale on the continent.
The comments from Haviland come as the BCC makes improving relations with the EU one of its key requests for the next government, saying the step would reduce costs for businesses.
The trade body is made up of 53 regional chambers of commerce affiliated to a central body and says it represents 50,000 businesses in the UK, which collectively employ six million people.
Its requests cover several specific policies, including securing a supplementary deal with the EU to remove the complexity of exporting food for small and medium-sized enterprises, and ensuring there are no new trade barriers created by linking the UK and EU emissions trading schemes.
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It is also lobbying for a new deal that would allow UK companies to travel and work in Europe for longer.
The Labour party has said it will not return to the single market, the customs union or freedom of movement, but wants to deepen ties with Europe.
This includes negotiating a veterinary agreement to prevent border checks, help touring artists secure visas, while also promising to an agreement on professional qualifications to help open up markets for UK service exporters.
The Conservative manifesto says that the party would aim to build on the UK’s trade and cooperation agreement with the EU, but would not agree to anything that would “infringe the country’s sovereignty or involve submission to the court of justice of the European Union”.
It also said it wanted to further the benefits of Brexit by signing more trade deals, speeding up infrastructure developments, cutting red tape for business and creating new fishing opportunities.
Haviland will also use her speech to call for a long-term economic growth plan with a vision of up to 20 yearsand warn that action is needed to fix the UK’s growing skills shortages.
