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Brexit: 'Bonfire of rules' mean more costs than benefits, CBI says

Brexit: 'Bonfire of rules' mean more costs than benefits, CBI says
From BBC - April 10, 2018

Diverging from European Union rules after Brexit will mean more costs than benefits for British business, a report by the CBI employers' group says.

In a survey of 23 industry sectors, the vast majority preferred continued close alignment with EU regulations.

Agriculture, shipping and tourism might benefit, but this was "vastly outweighed" by the impact on other sectors, the CBI said.

However, critics said the report just promoted the interests of big business.

The report, called Smooth Operations, suggests the UK could still exert influence over important regulatory decisions through continued membership of the many EU agencies - such as the ones governing aerospace and chemicals - in which other non-EU nations like Turkey currently participate.

CBI director-general Carolyn Fairburn said there was no appetite on the part of business for a bonfire of regulations, and called on the government to prioritise evidence over ideology in the negotiations over a future trade deal.

She said: "It's vitally important that negotiators understand the complexity of rules and the effects that even the smallest of changes can have.

"Deviation from rules in one sector will have a knock-on effect on businesses in others, and divergence from rules in one part of a production process will have consequences for market access throughout entire supply chains.

"Put simply, for the majority of businesses, diverging from EU rules and regulations will make them less globally competitive, and so should only be done where the evidence is clear that the benefits outweigh the costs."

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