There will not be alignment, we will not be a ruletaker – Sajid Javid
The Chancellor of the Exchequer, United Kingdom (U.K.) – Sajid Javid, has warned the manufacturers that there will not be alignment with the European Union (EU) after the Brexit happens on January 31, 2020.
Speaking to leading international English daily, Financial Times, Javid said, “There will be an impact on business one way or the other, some will benefit, some won’t.” He also said that the firms need to adjust to new regulations and not all businesses would benefit from Brexit.
He further added, “There will not be alignment, we will not be a ruletaker, we will not be in the single market and we will not be in the customs union — and we will do this by the end of the year.”
Talking about economic plans, Javid mentioned doubling the U.K.’s annual economic growth to 2.8%. This additional growth would come from spending on skills and infrastructure in the Midlands and the North of England. The low interest rates prevailing in the market will allow the Government to borrow money relatively cheaply.
The Food and Drink Federation (FDF), a membership organisation that represents and advises U.K. food and drink manufacturers, said that the move will increase the process of the food.
Speaking on the occasion, the Chief Operating Officer (COO) of FDF – Tim Rycroft said, “It sounds awfully like the death knell for the concept of frictionless trade with the EU.”
He also said, “We also have to make sure the government clearly understands what the consequences will be for industries like ours if they go ahead and change our trading terms.”
Apart from FDF, the automotive and pharmaceutical industry has also informed the Government that with U.K. leaving EU, their industry would be severely impacted. The Society of Motor Manufacturers and Traders wants to ensure that expensive tariffs should be avoided. The Confederation of British Industry (CBI) said Government should not feel it has an obligation to depart from EU rules.
For the records, the British Government has not yet finalised the future trading relationship with the EU. It will work on the plan during the transition period beginning from January 31, 2020. During this transition, U.K. will continue following the rules and terms of the EU and contribute to its budget.
Besides, a clock counting down to the moment the Brexit happens will be projected on Downing Street as part of Government plans to mark Brexit Day. The clock will tick down to 23:00 GMT, while Prime Minister of U.K. – Boris Johnson will address the nation. A special 50 Pence coin will also be released to mark the Brexit Day. Boris Johnson will be the first person to be conferred with the 50 Pence coin. Apart from this, once Brexit happens Boris will formally open trade talks with the United States (U.S.)
