FTA advocates for a smart Brexit process

Last month, the British government activated Article 50 of the Lisbon Treaty to formally launch the negotiations which will determine the conditions of the United Kingdom to leave the European Union (EU). It is the first time that a member state has opted to leave the EU, and Brexit clearly has the potential of having a considerable – negative – effect on the business sector, according to the FTA.

The possible effects of Brexit include imposition of tariffs and border checks in the future bilateral trade relations. It might also negatively impact economic growth – and consequently consumption – in the UK, the EU and the world. Further, as the EU will lose a liberal voice, there might be a shift towards a more ‘defensive’ EU trade policy. Also, Brexit will result in decrease in the influence of the EU, potentially leading to more market fragmentation.

To limit the impact of Brexit process, FTA director general Christian Ewert underlines the priorities of the international trade sector in these divorce talks: “We need to invent a magic formula which will guarantee the highest possible level of market integration while avoiding a domino effect triggering similar leave requests from other EU member states. At the same time, we need to leave the door open for the British government to exit Brexit, as the political mood in the UK might change again.”

Pushing for a sound strategy to mitigate negative impacts, promote possible opportunities and effectively represent the interest of FTA members, Ewert says, “The upcoming talks should be conducted in a spirit of fairness, trust and partnership to make sure the negotiations advance quickly, create legal clarity soon and prevent major business disruption.”

FTA represents more than 1,900 retailers, importers and brands to promote and defend international trade and supports their business by providing information and practical solutions towards sustainability in the global supply chain. (RKS)

Fibre2Fashion News Desk – India