DHAKA: A group of major business lobby groups has written an open letter urging the government to preserve barrier free trade with Europe.

The letter is signed by leaders of the CBI and manufacturers’ body the EEF.

It said the way in which the UK leaves the EU and on what terms is critical for jobs and investment in the UK.

It says defaulting to trading by World Trade Organisation (WTO) rules would leave 90 percent of UK goods trade with the EU subject to new tariffs.

The letter says that would mean 20 percent in extra costs for the UK’s food and drink industry and 10 percent for car producers.

These significant costs would affect British exporters and importers, as well as those in their supply chains, it adds.

“We respect the result of the referendum, but the government must make sure that the terms of the deal to leave ensure stability, prosperity and improved living standards,” the groups write.

“Every credible study that has been conducted has shown that [the] WTO option would do serious and lasting damage to the UK economy and those of our trading partners.”

The letter calls for the government to “give certainty to business by immediately ruling this option out under any circumstances”.

One of the signatories, CBI Director General Carolyn Fairbairn, said the letter called for “ruling out of the really worst options, to reassure investors that the UK was still a really good place to invest”.

“There is a negotiation that is going to take place, and I think businesses completely understand that,” she said.

“But falling into WTO rules in only 29 months from now, would mean up to 90 percent of goods could potentially have tariffs on them, there would not be the passports for our services industries.”

BDST: 0916 HRS, OCT 09, 2016
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