With the UK now a ‘third country’ outside of the EU’s Single Market and Customs Union, what are the gaps the businesses now face when operating between the two jurisdictions?
This was the question that was put to panellists of LOW Europe’s ‘Mind the gap’ debate on Wednesday, 27 October, on the occasion of the launch of their new report.
With the UK now a ‘third country’ outside of the EU’s Single Market and Customs Union, what are the gaps the businesses now face when operating between the two jurisdictions?
This was the question that was put to panellists of LOW Europe’s ‘Mind the gap’ debate on Wednesday, 27 October, on the occasion of the launch of their new report.
The debate gathered a distinguished panel of Ian Wright, CBE, Chief Executive, Food and Drink Federation UK; Ben Butters, CEO, EUROCHAMBRES; Helen Smith, Executive Chair, IMPALA; Leslie Galloway, Chairman, Ethical Medicines Industry Group; and Susan Danger, CEO, AmCham EU. The panel was chaired by LOW’s Strategic Counsel, Lord Andrew Lansley.
The panel explored the ways in which business interests diverge from the political interests of the UK and the EU in the aftermath of the UK’s divorce from the Union. In this context, the panellists discussed the need for independent representation of business in general, and for ‘UK plc’ in particular, within the EU policymaking scene.
In the course of the debate, Susan shared the US business perspective, as an example of a third country with significant influence in the EU. She made the case that with 55% of US multinationals’ global income coming from Europe, US companies have strong incentives to be present in the EU’s policymaking processes. She also emphasised the importance for US businesses to also make the EU understand why their perspective matters – with 4.8 million Europeans directly employed by US companies in Europe, the relationship goes both ways.
At the end of the debate, all panellists converged on the importance for UK businesses to expand their reach in Brussels. By establishing a hub and building a constructive narrative, working with counterparts from the EU, maintaining links with EU trade associations and expanding objective comment from British-based think-tanks, panellists agreed that businesses in the EU and the UK can move beyond the entrenched political positions around Brexit and find a new equilibrium that fosters trade and investment partnership.
Interested in hearing the debate first-hand? Watch the recording
Learn more about AmCham EU’s work on the EU-UK relationship
Check out Susan Danger’s contribution to LOW’s ‘Mind the gap’ report
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On Wednesday, 11 March, the United States Trade Representative launched Section 301 investigations into structural production overcapacity against a range of economies, including the European Union. We understand that this decision is part of a larger attempt to stabilise the US tariff system in the wake of the Supreme Court ruling striking down the International Emergency Economic Powers Act (IEEPA) tariffs.
The American Chamber of Commerce to the European Union (AmCham EU) is concerned about the continued uncertainty of the current trade environment. Companies still lack clarity over future tariff rates in both the short- and long-term. We continue to oppose broad-based tariffs as they raise costs for businesses and consumers and disrupt supply chains.
With potential measures against the EU under consideration, AmCham EU calls on the EU and the US to avoid escalation in the trade dispute. The priority must be to restore stability and predictability in transatlantic trade. The deal struck in the summer is not a perfect solution, but it offers the most realistic path forward given political priorities on both sides. We look to the parties to honour their commitments under the EU-US Framework Agreement.
The US Administration rightfully identifies overcapacity as a critical issue in the global economy which also affects the European market. We see the EU as part of the solution, rather than the problem. The EU and the US must work together to tackle the real issue at hand: unfair trading practices from non-market economies.
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Business associations have expressed full support for the European Commission’s decision to provisionally apply the EU–Mercosur Interim Trade Agreement. The move marks a decisive step towards implementation after more than 25 years of negotiations. The economic case is compelling. The European Commission estimates indicate that, once fully implemented, the Agreement could increase EU exports to Mercosur by nearly 40%, generating €48.7 billion in additional annual exports and €77.6 billion in annual EU GDP gains by 2040. At the same time, prolonged delays have carried significant costs for European competitiveness. Swift operationalisation of the Agreement will enhance market access, diversify trade relationships and reinforce the EU’s leadership in sustainable, rules-based trade.
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The European Parliament’s decision to refer the EU-Mercosur free trade agreement (FTA) to the Court of Justice adds a further delay to one of the EU’s most important and long-running trade initiatives.
Commenting on the vote, Malte Lohan, CEO of AmCham EU, said: ‘Today’s vote by the European Parliament to refer the EU-Mercosur agreement to the Court of Justice is a self-inflicted setback for Europe’s economic interests and geopolitical relevance at a moment when the EU can least afford it.
After 25 years of negotiations, this should have been Europe stepping forward as a global trade leader and champion of win-win partnerships. It was an opportunity to strengthen Europe’s global position, diversify supply chains and open new opportunities in a fast-growing market of 284 million people.
Instead, this vote has chosen - yet again - delay.
Europe’s credibility as a trade powerhouse is now on the line. The EU must move decisively to get this agreement back on track.’
The EU-Mercosur FTA will deepen economic ties, reduce barriers to trade and strengthen long-term engagement with a key region. How this process now unfolds will be critical not only for the agreement itself, but also for confidence in the EU’s broader trade agenda.
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