LONDON (Reuters) – Britain’s aerospace business could be badly broken if the nation leaves the European Union with out a free commerce deal and any divergence from EU guidelines could be “utterly self-defeating”, a committee of lawmakers stated.
The business is one among Britain’s largest employers of expert labour, generates income of 32 billion kilos a yr and accounts for about 7 % of the nation’s manufacturing output.
But corporations are anxious that Britain’s exit from the world’s largest buying and selling bloc might result in elevated customs checks and fracture intricate provide chains constructed up throughout the continent over a long time.
Failure to agree on a solution to harmonise customs processes would push up prices and threat the long-term viability of their factories, the lawmakers stated within the report.
The aerospace business might face 1.5 billion kilos a yr in further prices after Brexit if companies exporting elements to the EU face extra checks on the border, business physique ADS Group instructed the committee.
“The health of the industry relies on components moving quickly across borders with delays of even a few hours having a significant impact on costs. Given this, the government must ensure custom procedures are kept to an absolute minimum after we leave the EU,” the chairwoman of Britain’s business committee, Rachel Reeves, an opposition Labour lawmaker, stated on Monday.
Britain says it’s in search of the freest doable commerce with the EU after Brexit and has outlined potential customs regimes, nevertheless it has but to start detailed negotiations with the bloc on what its future buying and selling relationship will appear like.
The report additionally stated that Britain ought to stay a member of the European Aviation Safety Agency (EASA) to make sure producers of aviation components can proceed to learn from cooperation on security and keep away from elevated certification prices.
EASA ensures airways respect security guidelines and certifies aerospace merchandise throughout the bloc, serving to to carry down the prices of growth and manufacturing inside the business. It additionally has a bilateral take care of the United States beneath which they settle for one another’s certifications.
Reporting By Andrew MacAskill; Editing by Susan Fenton