With the UK now a ‘third country’ outside of the EU’s Single Market and Customs Union, what are the gaps the businesses now face when operating between the two jurisdictions?
This was the question that was put to panellists of LOW Europe’s ‘Mind the gap’ debate on Wednesday, 27 October, on the occasion of the launch of their new report.
With the UK now a ‘third country’ outside of the EU’s Single Market and Customs Union, what are the gaps the businesses now face when operating between the two jurisdictions?
This was the question that was put to panellists of LOW Europe’s ‘Mind the gap’ debate on Wednesday, 27 October, on the occasion of the launch of their new report.
The debate gathered a distinguished panel of Ian Wright, CBE, Chief Executive, Food and Drink Federation UK; Ben Butters, CEO, EUROCHAMBRES; Helen Smith, Executive Chair, IMPALA; Leslie Galloway, Chairman, Ethical Medicines Industry Group; and Susan Danger, CEO, AmCham EU. The panel was chaired by LOW’s Strategic Counsel, Lord Andrew Lansley.
The panel explored the ways in which business interests diverge from the political interests of the UK and the EU in the aftermath of the UK’s divorce from the Union. In this context, the panellists discussed the need for independent representation of business in general, and for ‘UK plc’ in particular, within the EU policymaking scene.
In the course of the debate, Susan shared the US business perspective, as an example of a third country with significant influence in the EU. She made the case that with 55% of US multinationals’ global income coming from Europe, US companies have strong incentives to be present in the EU’s policymaking processes. She also emphasised the importance for US businesses to also make the EU understand why their perspective matters – with 4.8 million Europeans directly employed by US companies in Europe, the relationship goes both ways.
At the end of the debate, all panellists converged on the importance for UK businesses to expand their reach in Brussels. By establishing a hub and building a constructive narrative, working with counterparts from the EU, maintaining links with EU trade associations and expanding objective comment from British-based think-tanks, panellists agreed that businesses in the EU and the UK can move beyond the entrenched political positions around Brexit and find a new equilibrium that fosters trade and investment partnership.
Interested in hearing the debate first-hand? Watch the recording
Learn more about AmCham EU’s work on the EU-UK relationship
Check out Susan Danger’s contribution to LOW’s ‘Mind the gap’ report
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Today marks a historic milestone with the signing of the EU-Mercosur Trade Agreement, creating the biggest trading block in the world. European business – represented by more than 28 associations across a wide range of sectors – warmly welcomes this signature. It sends a strong and timely signal that the EU remains open and is committed to rules-based global trade. In a time of global uncertainty, this agreement is a key growth booster.
By opening access to over 270 million consumers via the elimination of trade barriers and the removal of tariffs on over 90% of EU exports, the agreement provides the thrust European companies need to export, invest, and grow, as well as to diversify their supply chains, sourcing essential products and raw materials from Mercosur. By 2040, according to DG Trade’s calculations, the agreement is expected to add 77.6 billion euros to the EU GDP, resulting in a 39% increase in EU exports to Mercosur.
With the agreement now signed, the ball is firmly in the court of the European Parliament in ensuring rapid ratification. We therefore call on Members of the European Parliament to give their consent and allow Europe’s engine of economic growth and prosperity to be switched on and move ahead decisively. After over 25 years of negotiations, we are finally in sight of the finish line. We cannot afford to wait any longer.
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EU Member States’ decision to approve the EU-Mercosur free trade agreement is a major victory for the EU’s free trade agenda. For companies in the EU, the agreement promises to support deeper integration of value chains and facilitate access to a market of 284 million consumers. This will contribute to more resilient and diversified supply chains, including access to critical raw materials essential for the EU’s economic security and industrial growth.
AmCham EU praises the European Commission for its work with Member States to ensure the deal benefits all sectors of the EU economy. By concluding Mercosur’s first trade agreement with a major global partner, the EU demonstrates its commitment to open and rules-based trade. The European Parliament must now approve the agreement without delay, so that – after 25 years of negotiations – businesses and citizens can start benefiting from this deal.
Reacting to the news, Malte Lohan, CEO, AmCham EU, stressed the importance of the agreement: ‘The Council’s decision is a timely one. In today’s world, the EU needs to boost its economic competitiveness and maintain its free trade leadership. The EU-Mercosur agreement ticks both boxes’.
‘The business case is clear; the geopolitical case is clear. It is now the Parliament’s job to see the agreement across the finish line’, he added.
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The European Council’s decision to postpone its vote on concluding the EU-Mercosur free trade agreement (FTA) is a missed strategic opportunity that threatens the EU’s credibility as a reliable partner. After more than 20 years of negotiations, the EU is once again delaying one of its most ambitious and strategic trade agreements.
The EU-Mercosur FTA’s economic benefits are clear. At a time when strengthening competitiveness, economic growth and partnerships should be paramount, the FTA provides access to a market of 284 million consumers – reducing tariff and non-tariff barriers and supporting integrated supply chains.
Beyond its economic benefits, the EU-Mercosur FTA is also an important geopolitical tool. It would anchor a long-term strategic partnership with a key region and reinforce the EU’s role as a credible advocate of rules-based trade. Amid heightened geopolitical rivalry, postponement weakens the EU’s standing and its ability to conclude ambitious FTAs elsewhere.
The EU cannot afford further delays. The EU-Mercosur FTA is vital for the region’s competitiveness, resilience and global credibility. The European Council must promptly return to this file and conclude this FTA in January.
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