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U.K. businesses prepare brexit wish lists as EU talks commence
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Loading...Businesses are bracing for Brexit by making last-ditch demands of the U.K government to keep their interests in mind when Prime Minister Theresa May opens two years of talks with the European Union this week.
Concerns include the risk of tariffs on exports to the EU, disruptions to supply chains and the potential loss of European workers.
HEALTH CARE
A loss of EU funding could threaten research and development, especially at universities and start-up biotech firms, unless the U.K. matches the amount forfeited. Big pharmaceutical companies such as AstraZeneca Plc want immigration laws that allow EU scientists to work in the U.K. British patients could lose out if the country severs ties to the European Medicines Agency, because the U.K. by itself is too small to be a priority for drugmakers bringing life-saving new treatments to market.
MEDIA
For the U.K.’s creative industries, loss of membership in the single market could deter investment in film and television programming, threatening the U.K.’s position as the premier European destination for U.S. studios. Broadcasters want to ensure that U.K. productions continue to qualify as “European,” in order to benefit from regional subsidies that foster investment.
TELECOMMUNICATIONS
Travelers from the U.K. risk higher phone bills. While the EU is abolishing roaming fees as of June 2017, carriers including BT Group Plc and Vodafone Group Plc could face higher wholesale prices from other networks on the continent unless the U.K. agrees to cuts as part of a trade deal.
TECHNOLOGY
The main concern for the U.K. tech industry is a loss of access to skilled workers from the EU. Between 2009 and 2015, around one in six new hires in the tech sector came from other countries in the bloc, according to lobby group techUK.
AGRICULTURE
U.K. farmers fear losing easy trade access to the EU, the largest market for their exports. If Britain ends up exposed to World Trade Organization tariffs, agriculture will be among the sectors to suffer the most, given such duties run more than 40 percent for meat and cereals.
BANKS
Top of the wish list for banks is securing a lengthy transition period after the end of the two-year Brexit negotiation period, during which the industry would retain full access to the EU’s single market. Absent that guarantee, finance chiefs say they will have to start moving people into the EU after May triggers formal exit talks.
CARMAKERS
Carmakers are worried that Brexit will result in 10 percent tariffs on trade with the EU. More than half of U.K. vehicle exports headed to the bloc in 2015. PA Consulting calculated that the average car price in Britain would rise by 2,300 pounds ($2,900) in the event of a “hard Brexit” under which the country loses membership in the single market.
AIRLINES
Flights between the U.K. and EU will require a new treaty if the current single-sky arrangement isn’t maintained. U.K. carriers that fly from one EU state to another are also likely to need an operating license based somewhere in the bloc.
LOGISTICS
For logistics companies, on the other hand, Brexit could bring benefits.Protectionism leads first to more complexity and complexity is good for the industry.
RETAIL
Because the U.K. imports about half the food it eats, tariffs that run as high as 30 percent for dairy products and confectionery products would put upward pressure on prices.
FOOD AND DRINK
Britain’s coffee shops, pubs, restaurants and hotels could suffer from a shortage of EU migrant workers and the imposition of tariffs.
Bloomberg
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