A goods-only Brexit means limiting the businesses of the future

Responding to Cabinet discussions at Chequers on the UK’s approach to the Future Economic Partnership with the EU, techUK has warned that a Brexit that effectively maintains membership of the Single Market for goods but not services would put the UK’s highly services-orientated digital economy at a serious disadvantage against their European competitors.

Commenting, techUK CEO, Julian David, said:

“It is right that the Prime Minister has sought to take the tough decisions needed to move the conversation about the UK’s plan for our post-Brexit relationship with Europe forward. However, as the Government itself has made clear, a goods only deal would reduce the access for services to the European market.  Given that 80% of tech exports are services, and our biggest market remains the EU, this will have very real consequences. 

“The UK tech sector does not see clear benefits of divergence with the EU. Indeed there has been a strong consensus to maintain alignment on crucial issues such as data protection.  A goods only approach would risk UK based tech firms selling into Europe having to comply with two competing regulatory regimes and being unable to guarantee that services can be provided on the same terms to customers in different locations. 

“Such a deal also ignores the increasing number of goods that rely on a services contract to operate where divergence would make it harder for UK digital-services businesses to be part of European supply chains.   

“techUK agrees that we need a frictionless border for goods, but a Brexit based on goods alone is not one that plays to the strengths of the UK’s digital economy.  It would create a lop-sided Brexit that causes complexity for business and confusion for consumers.”

  • Julian David

    Julian David

    CEO

Share this

FROM SOCIAL MEDIA

One month to go until #SmarterStateUK 2019. Join us on 18 September, along with digital leaders from across the pub… https://t.co/VpqmzqeVfK
Join us on 06 November in #Manchester for #Supercharging the Digital Economy 2019. We'll be discussing how digital… https://t.co/kMvV06oX7E
Make sure you get your vote in before the deadline this Friday! #womenintech #CWwit50 https://t.co/1eaIpNRE1I
Neil Ross (@neil13r), Policy Manager at techUK, writes on the impact of Brexit on data flows and the importance of… https://t.co/9qweZGGEQK
Calling all #healthtech suppliers: @NHSX wants to bring all guidance on information governance together in one pl… https://t.co/FcD9QAKYnB
Just over 1 month to go until #techUKSmarterState 2019. Book your ticket now and join 200+ digital leaders from acr… https://t.co/Zp3IL6n0Bv
Become a Member
×

Become a techUK Member

By becoming a techUK member we will help you grow through:

Click here to learn more...