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US business: Time for critical Brexit deal running out
Following the October EU Council summit, US business reiterates the importance of finalising an EU-UK Withdrawal Agreement as soon as possible to reduce uncertainty for businesses on both sides of the Channel.
Time is running out for the two parties to avoid a damaging cliff-edge scenario that would be disastrous for companies, consumers and citizens on both sides.
An agreed and ratified exit deal would provide much-needed confidence for US businesses who are heavily invested in the EU and the UK and enable the two parties to begin fully negotiating the terms of the new relationship. Crucially, it would also precipitate the onset of a transition period that would allow policymakers and businesses time to adapt to the requirements of the new relationship. Given the short time frame for the proposed transition and the complexity of the task ahead, AmCham EU welcomes the possibility of an extended transition period beyond 2020.
US companies continue to review their current commitments and plan for the worst-case scenario. To further mitigate risk, governments on both sides should through public announcements also provide clarity without further delay on supervisory cooperation, interventionary measures and contingency planning that will be necessary in the event of a no-deal Brexit.
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US business interest in Brexit: American companies are heavily invested in both the EU and the UK. In 2017, Europe was the recipient of some 60 percent of all US FDI, out of which one quarter flowed directly to the UK – demonstrating the importance of both markets to American business.