Business groups give their verdict on EU rubber-stamped Brexit deal
After 18 months of wrangling, Theresa May has finally won approval for her withdrawal deal from the EU's 27 leaders.
When the Prime Minister announced last week that the withdrawal agreement had been approved by her Cabinet, many businesses welcomed the news, saying it afforded them more clarity after months of uncertainty.
Here's what they had to say:
'There is is still no clarity on services'
Deloitte global head of Brexit David Noon: "Businesses need to look at the political agreement carefully. While this is one less hurdle to clear, and it gives a general direction of travel, there’s still no clarity on services and a range of technical points. There is a job to do to turn the political agreement into a comprehensive trade agreement. Companies will need to maintain their vigilance in planning for a range of all possible scenarios, even if ultimately they’re not needed."
Financial services Brexit partner David Strachan: "The political agreement has just three paragraphs on financial services. While this is arguably better than no paragraphs at all, some will question just what it amounts to. Much of what is in there confirms what we know, that for financial services the future relationship will be based on equivalence. It is positive that the EU and UK will endeavour to complete equivalence assessments before end-June 2020, and that they are agreeing to consult on decisions to adopt, suspend or withdraw equivalence decisions.
"However, 'completion' doesn’t necessarily mean reaching a positive decision on equivalence. There is no mention of whether the equivalence decisions will be based on the current approach; something that improves on the status quo, along the lines of what the UK’s white paper proposed; or something that’s tougher than today, reflecting some of the proposals currently working their way through the EU’s legislative process. Finally, there’s a prudential carve-out, which in effect means both sides can do whatever they want if they decide a prudential measure, such as capital or liquidity, is necessary."
'There is much still to be negotiated'
Chief executive of TheCityUK Miles Celic: "Today marks a significant moment in the Brexit negotiations. The approval of the Withdrawal Agreement means a deal which can deliver an orderly Brexit is a major step nearer. The avoidance of instability is critical for our industry, the customers and clients we serve, and our employees in the UK and across the EU.
"There is now a straight choice between this deal and a no-deal Brexit, which offers only higher risk, costs and disruption.
"The focus must now be on securing the Withdrawal Agreement and the transition period it brings – which is critical for our industry and many others. There is much still to be negotiated to define the future relationship. The sooner that can get started, the better."
'The withdrawal agreement is just one more step on a long road for businesses'
British Chambers of Commerce director general Adam Marshall: "While this is a milestone in the political process of Brexit, and a significant personal achievement for the Prime Minister, it’s just one more step on a long road for businesses exhausted by three years of nonstop political debate and growing uncertainty.
"If the agreement clears the political hurdles ahead, there can be no pause for breath, and no let-up in the negotiations.
"The fact is that businesses still need clarity and precision on the terms of trade they will face with the EU and many other countries within a matter of months. Firms need clarity and precision on who they can hire, what rules they need to follow, and what more the government will do to support them through this period of change.
"The businesses that power our communities do not want to face the chaos of a messy and disorderly exit from the EU next March. As companies across the UK evaluate what this agreement means for them, parliamentarians must keep the millions of firms and families trying to plan for the future at the forefront of their minds."
'We are reassured that decisions on equivalence will be taken before the end of June 2020'
Investment Association chief executive Chris Cummings: "The agreement today between the UK and the EU is an important step in delivering a final deal that protects the savings of millions of people around the world and the asset management industry that supports them.”
"We are reassured by the commitment expressed today that decisions on equivalence will be taken before the end of June 2020 and in a co-operative manner, which will help UK savers and investors to continue to find opportunities across the EU after Brexit. The focus must now be on ensuring that this access is fair, transparent, and reliable.
"Crucially, we must not lose sight of the end goal: a final agreement that protects the interests of savers by allowing the asset management industry to work seamlessly across borders. The UK is the leading asset management centre in Europe so it is essential that we continue to have a strong voice in the rules that govern our industry, failure to secure this influence risks weakening our competitiveness and ability to serve savers and investors.
"Although there are still important political hurdles to clear in the coming weeks, and firms will continue to keep their contingency plans under review, the agreement today takes us a step closer to a new relationship between the UK and EU."
'A transition period is essential'
British Retail Consortium chief executive Helen Dickinson: "It is now up to Parliament to ensure that we can have a transition period from March 29th and avoid a chaotic no-deal Brexit for consumers. A transition period is essential to give retailers and their suppliers time to adapt to business outside the EU. Without such a deal, consumers face higher prices, and less choice on the shelves."