UK govt should not sacrifice EU ties to chase free trade deals - IoD

Britain should ensure it maintains strong trade links with the European Union and not sacrifice them in pursuing deals with third countries, the Institute of Directors (IoD) said on Tuesday.

An IoD poll of almost 800 members found the EU had seen stronger growth as a market for UK exporters than Asia or North America over the past two years.

It reported that 43% of directors surveyed reported seeing most growth for their business in the EU over the time period, while less than half that figure (21%) pointed to North America, with the same proportion also citing Asia.

Business leaders saw potential in those areas in the next five years, but the EU remained the area with the highest expectations for growth, the IoD said.

More than two out of five of those surveyed found most business growth in the EU, compared with 20% of those who named North America or Asia. Two thirds of those polled exported goods, up by 7% on 2013.

A quarter of those that exported internationally said Brexit would be a catalyst for "stepping up non-EU market engagement", while around 30% said it was not a factor but that they were already in the process of stepping contacts outside the bloc, which britain will leave next March before a transition period begins.

The IoD called on the government and businesses to work closely together in order to develop a truly ‘global Britain’ strategy and stressed the need for the Department for International Trade to influence the upcoming Immigration Bill "to make sure that labour mobility is a key cross-departmental focus and ensure, alongside DExEU colleagues, the continuity of existing trade agreements".

Allie Renison, the IoD's head of Europe and trade policy, said the immediate focus should be on "reaching a successful deal with the EU that puts maintaining market access at the heart of its priorities. Steadying the ship will enable the UK to navigate a clear path to a truly global future".