EU is preparing to offer Britain a trade 'worse than Japan and Canada' in move that will hit medicine and car industries hardest

  • Boris Johnson's government has insisted that Britain's economy will 'diverge' 
  • But the EU is threatening to with-hold Mutual Recognition Agreements in reply
  • These allow the smooth trade of goods across borders with other trade partners
  • Exclusion could hamper British firms including car-makers and pharmaceuticals

By David Wilcock, Whitehall Correspondent For Mailonline

Published: | Updated:

Brussels is planning to offer the UK a worse trade deal than the bloc has with Japan  and Canada if it insists on moving away from EU standards, it was reported today.

Boris Johnson's government has insisted that Britain's economy will 'diverge' from the bloc's standards and working practices, and wants a trade deal done by the end of the year. 

But in a hardline response, the EU is planning to take steps to take away the UK's ability to get a 'competitive edge' over continental firms if it insists on taking a different path.

It includes not allowing British trade bodies to certify that UK-made goods adhere to EU standards under Mutual Recognition Agreements (MRAs).

These allow the smooth trade of goods across borders with other trade partners like Japan and Canada.

Not allowing the UK to have MRAs could seriously hamper the ability of British firms to trade across the Channel, especially car-makers and pharmaceuticals. 

A European Commission source told the Telegraph: 'Why would we rush into providing the UK a competitive edge to have the UK as an authorised testing lab on our shores?' 

Sajid Javid (pictured in Brussels yesterday) has insisted Britain will not be a 'rule taker' and align with EU regulations after January 31.

Sajid Javid (pictured in Brussels yesterday) has insisted Britain will not be a 'rule taker' and align with EU regulations after January 31.

Not allowing the UK to have MRAs could seriously hamper the ability of British firms to trade across the Channel, especially car-makers and pharmaceuticals.

Not allowing the UK to have MRAs could seriously hamper the ability of British firms to trade across the Channel, especially car-makers and pharmaceuticals.

Sajid Javid has insisted Britain will not be a 'rule taker' and will not align with EU regulations after January 31.

The Chancellor said this week manufacturers have had more than three years to prepare for Britain's transition and urged businesses to 'adjust'.

In an interview with the Financial Times, he said: 'There will not be alignment, we will not be a rule taker, 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.'

It prompted a host of warnings from trade organisations 

The Confederation of British Industry (CBI) said alignment supports jobs and competitiveness for many firms.

Its director general Dame Carolyn Fairbairn said: 'Business welcomes the Chancellor's ambitious vision for the economy and recognises there are areas where the UK can benefit from its future right to diverge from EU regulation.

'However we urge Government not to treat this right as an obligation to diverge.

'For some firms, divergence brings value, but for many others, alignment supports jobs and competitiveness - particularly in some of the most deprived regions of the UK.'

The Society of Motor Manufacturers and Traders (SMMT) said its priority was to avoid 'expensive tariffs and other behind-the-border barriers' between the UK and EU that limit market access.

 

 

  

 

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