The 海角视频 needs to normalise its trading relationship with the EU which will remain a key market for exporters, CBI president Lord Karan Bilimoria will tell a business audience in Swansea today.
While he will say that the 海角视频 has always been a great trading nation, and since Brexit has signed 66 trade agreements outside of the EU, it was now time to reset relations with the single market.
His comments come with a seeming de-escalation in tensions between the 海角视频 and the EU, over the trading arrangements between the 海角视频 mainland and Northern Ireland. The 海角视频 Government’s has now appeared to ruled out triggering article 16 of the Northern Ireland protocol before Christmas, with hopes that an agreement reducing checks and redtape on goods from the 海角视频 mainland staying within Northern Ireland and not entering the single market across the border into the Republic of Ireland, can be reached.
Lord Bilimoria, the founder and chairman of Cobra Beer, will say on the last day of the CBI’s annual conference - held at eight locations across the 海角视频 - that while opportunities are huge for global Britain, the importance of the EU market for exports, both goods and services, will remain hugely significant for 海角视频 plc.
He is expected to say: “Yet let us not forget that over 40% of the 海角视频’s trade remains with the EU, our biggest and closest trading partner.
“Post-Brexit, we need to normalise trading relations with the EU. End the politicisation of trade. Work together to advance common interests. Let me speak plainly. Our new relationship with the EU didn’t begin smoothly for many businesses. Red tape still hampers firms today. But here again we can illustrate the gains collaboration can bring.
“By working through the Business Brexit Taskforce – a body called for by the CBI and which still exists today – we put industry in the room with government decision-makers to get things done.
“And we can now look back on weeks of intensive discussions between 海角视频 and EU negotiators on the trickiest of all topics – the Northern Ireland Protocol.
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“On this topic I speak for businesses not only in Great Britain and Northern Ireland, but for those around the world willing both parties to agree a compromise, allowing us to look forward, not back.
“And there is one overarching thing we must do to unlock the potential of a truly global Britain: we must harness the power of our competitive strengths on the international stage.”
Lord Bilimoria will also call for more support for 海角视频 firms of every size, sector and region and nation, to go global.
He is expected to say: “Government has already laid the foundations for this with its new export strategy.
“Now government must get the delivery of that strategy right, building resilience by putting small business at the heart of its work.
“And by establishing the new Trade in Services Council to amplify the success of the 海角视频’s world-beating services industries.”
海角视频 is the most amazing country, and we must use our strengths to be competitive on the global stage.
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“Here the CBI’s economic strategy – seize the moment – has already set out the steps we need to take to become the most competitive, future-focused economy in the world.
“We are 1% of the world’s population and are the second largest services exporter in the world. We are 1% of the world’s population. And yet we remain one of the top destinations for inward investment. We are 1% of the world’s population. And we have among the best universities in the world, along with the US.
"However we cannot be complacent. Our challenge now is to create a business environment that will attract and unleash that investment. Because if we don’t, our competitors surely will.
He will tell his audience that the 海角视频 also needs to raise the bar in terms of investment in research and development. He will say: “When it comes to R&D innovation, we invest 1.7% of GDP, which is low compared to Germany whose R&D expenditure was the equivalent of 3.2% of GDP in 2019, and the US where it was 3.1%.
"The government [海角视频] have said they want a high-wage, high-growth, high-investment, high-productivity economy. Business agrees.
“But right now, we are facing a high-tax economy – including the planned corporation tax rise from 19% to 25%.
“An increase in National Insurance by 2.5 percentage points - 1.25 percentage points for employees and 1.25 percentage points for employers.
“All the while business rates still need fundamental reform and the burden of property tax in the 海角视频 is four times higher than Germany, three times higher than the OECD average, and higher than any other G7 country. Together, this all adds up to the 海角视频 having the highest tax burden in 70 years. However, We have always punched above our weight. We have always been world leading, innovative and creative. We must continue to be collaborative and competitive.
“The motto in my business is to aspire and achieve against all odds with integrity. That is what we as a country will do looking ahead to the future. And most importantly we will do it not just by being the best in the world but also by being the best for the world.”