Ibec today warned that they are deeply concerned at the increasingly "definitive and hardline" position of the UK government in relation to Brexit. The group said any move by the UK to unilaterally forge new global trade deals was at odds with membership of the current EU customs union and was a combative starting point to talks.
Ibec said a UK departure from the customs union as it currently stands could seriously disrupt trade between Northern Ireland and the Republic while deeply damaging UK Irish economic relations.
According to Ibec, a return to WTO rules would be a significant economic shock to the economy and would hit Irish exporters hard. They warn it would also set the UK and Ireland on very different economic trajectories.
Ibec say in the interest of maintaining good business relations, it is vital that the UK Government sets out in more detail how the serious challenges presented by a hard Brexit might be addressed, including the impact on cross border trade on the island of Ireland.
Speaking today, Ibec CEO Danny McCoy said, "This is an aggressive move by the UK, showing little regard for our trading relationship and for relations with other EU member states. Theresa May has signalled a change to the UK business model, away from a collective European rules-based approach, towards a more nationalistic, isolated stance."
He added, "This is likely to lead to a protracted and unwelcome period of uncertainty and instability for business. Ireland is uniquely exposed to the risks given out deep economic ties with the UK."
Source: www.businessworld.ie
