UK Prime Minister, Theresa May, announced today (21/11/2016) that she will seek a transitional trade agreement with the EU, in response to concerns raised by the Confederation of British Industry’s (“CBI“) president.
The CBI’s president, Paul Drechsler, stated that businesses could find themselves “stranded in regulatory no-man’s land” when the UK exits the EU without a transitional trading regime in place. He further stated that “businesses are inevitably considering the cliff-edge scenario – a sudden and overnight transformation in trading conditions“.
Speaking at the CBI’s annual conference, Mrs May stated that she will seek to avoid a “cliff-edge” Brexit, in the event that negotiations with the EU do not result in a trade deal within the two years provided under Article 50 of the Lisbon Treaty.
Addressing concerns raised by Mr Drechsler, Mrs May stated that she could “understand the point that Paul has made…that people don’t want a cliff-edge” and that “they want to know with some certainty how things are going to go forward“.
However, the Prime Minister also stated that she would not provide a “running commentary” that could undermine her negotiating position.