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British business community cautiously backs draft Brexit deal

Source: Xinhua| 2018-11-16 06:31:31|Editor: Mu Xuequan
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LONDON, Nov. 15 (Xinhua) -- British business community have cautiously backed Prime Minister Theresa May's draft Brexit agreement as uncertainties clouded over the future relationship between Britain and the EU with a cabinet turmoil seen on Thursday.

Several ministers, including the high-profile Brexit Secretary Dominic Raab, resigned to protest the agreement and speculations were rising if more officials would follow suit. However, when speaking at a press conference later the day, May vowed to move on with her Brexit plan on the basis of the draft agreement by saying that "the course I have set out is the right one."

"If passed, it moves the UK one step away from the nightmare precipice of no deal and the harm it would cause to communities across the country...This deal is a compromise, including for business, but it offers that essential transitional period as a step back from the cliff-edge," said Carolyn Fairbairn, director-general of Confederation of British Industry.

Though firms will continue to implement their Brexit contingency plans, they have noticed the progress around the Brexit deal and called for more clarity.

Siemens UK chief executive Juergen Maier was quoted by local media that the agreement was not ideal but would mean "much lower friction" than a no-deal scenario, adding that "as a business we can make it work so let's get on with it."

Miles Celic, CEO of theCityUK, described the draft deal as "great strides", and it is "encouraging" that the declaration is grounded in the principles of regulatory autonomy, transparency and stability, and underpinned by close and structured cooperation.

"The industry will also welcome the clarity on the legally-binding transition period, "Celic said.

Catherine McGuinness, Chair of the Policy and Resources Committee of the City of London Corporation, said "the proposed framework for the future relationship provides welcome clarity and offers a foundation for financial services. "

McGuinness said the commitment to close regulatory and supervisory cooperation is a positive move that recognizes the need for any deal to reflect the City's unique role in providing services to households and businesses across Europe.

A statement from the national federation of fishing organizations said its provisional view is "this is an extremely important first step towards a new future for the UK as an independent coastal state, denied us 40 years ago when the UK signed up to the Common Fisheries Policy." However, it said further challenges lie ahead in securing the actual access arrangements and quota shares consistent with that new status.

Sterling had a volatile day's trading, slumping more than 1.8 percent against both the dollar and the euro following the high-profile resignations, while the FTSE 100 was broadly flat as markets greeted news of the Brexit deal with caution.

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