Thousands of UK manufacturers tell political leaders to revoke Article 50 if Brexit deal can’t be reached this week.
Thousands of manufacturers in the UK that are major customers of the freight transport and logistics sector are calling on UK political leaders to revoke Article 50 – the two-year procedure within the Treaty on European Union for a member state to withdraw voluntarily from the EU – if UK prime minister Theresa May cannot secure a Brexit agreement by this week’s 12 April deadline.
The Sunday Times quoted extracts of a recent letter sent by Stephen Phipson, chief executive of Make UK, which represents 20,000 manufacturing firms, to UK prime minister Theresa May and Labour leader Jeremy Corbyn, in which he said it was “critical for the future of UK manufacturing businesses and their workforces that we bring the current uncertainty to an end”.
Make UKand others have stressed that the manufacturing sector is particularly exposed to the threat of a no-deal Brexit, as many production plants depend on the ‘just-in-time’ delivery of components from Europe –and upon dozens of free-trade deals the UK has with countries around the world, not to mention with its current EU and EFTA partners. Firms have been stockpiling parts in order to offset the immediate potential impact of possible bottlenecks in truck traffic at cross-Channel ports that could delay vital supplies – and to insulate themselves from the initial potential impact of new tariffs and currency changes.
Phipson wrote: “The majority of our members have told us, in no uncertain terms, that the current situation of short-term extensions and prolonged ambiguity cannot continue. Should a parliamentary majority not be achieved this week, or agreement not achieved with the EU at the emergency council meeting, we cannot continue to take damaging short-term decisions or risk a no-deal departure. In this scenario, Make UK is calling for the government to revoke article 50.”
He went on to explain that the prospect of the UK leaving the EU without a deal was already having a “tangible impact” on confidence, with some firms postponing investment decisions or unable to agree new contracts with European customers because of lack of visibility on the Brexit outcome.
Phipson continued: “We support the democratic outcome of the referendum, but believe that if an agreement cannot be reached this week, it is now time to acknowledge that the current process has not worked and must be halted.”
Source: Lloyd’s
