Engineering news
The government has released its white paper on Brexit outlining 12 principles that will guide the complex negotiations with the EU, including a focus on free trade with European markets, securing new trade agreements with other countries and ensuring the UK remains a leader for science and innovation.
Despite confirmation that Britain will leave the single market, the white paper highlights the importance of the EU as a trading partner and the government’s hopes to continue free trade with EU markets. However, in a bid to downplay the country’s dependence on EU trade, it says that UK’s exports to the EU has declined from 54% in 2000 down to 44% in 2015. Furthermore, annual growth in UK exports to the EU (around 2.5% between 2005/2015) has lagged behind annual growth in global exports (more than 4% between 2005/2015).
Post-Brexit, government will look to “increase significantly” UK trade with “the fastest growing and most dynamic export markets in the world”. This would mean updating the terms of the UK’s membership of the World Trade Organization.
There will most likely be a large focus on trade agreements the United States, which the white paper states is the UK’s single biggest export market on a country-by-country basis.
A large focus is given to the forming of a new immigration policy, which makes up one of the 12 guiding principles. The new system will be developed to control EU migration, and could be slowly introduced in a phased approach to allow businesses time to prepare.
The white paper stresses its openness to “international talent” and says the immigration policy will be designed to help fill skills shortages and welcome "genuine" students. It also reiterates governments’ confirmation that existing EU students and those starting courses in 2016-17 and 2017-18 will continue to be eligible for student loans and home fee status for the duration of their course.
In addition, government has also confirmed that research councils will continue to fund postgraduate students from the EU whose courses start in 2017-18. However, business and academic institutions that rely on talent from the EU have previously expressed concerned with the government’s aim to control the numbers of people coming from the EU, as well as fears that increased restrictions on immigration will deter workers from applying to work in the UK.
The white paper states that the government “recognises the important contribution made by students and academics from EU member states to the UK’s world class universities” but gives no clear plans of how they will address the issues. However, as part of dampening any negative impacts on business and academia, government says it will ensure that businesses and communities have the opportunity to contribute their views.
Meanwhile, the news that the UK will leave the EU nuclear research body Eurotom has raised concerns over the loss of research and development resources and the impact it could have on nuclear skills in the country. The white paper says, however, that UK leaving Euratom will not affect the country’s nuclear research and development and that “alternative arrangements” for international collaboration in nuclear research will be made.
Labour has criticised the white paper, claiming it “says nothing” and has been produced too late in the day to allow for meaningful debate over its contents.
Terry Scuoler, chief executive of EEF, the manufacturers’ organisation, said: “There is more emphasis now on a phased implementation of whatever deal is reached on future trading arrangements which is important for businesses who will have to navigate through this.
“The proposals for new immigration controls remain thin on the ground. While the commitment to controlling our borders is made clear, we need an equally positive commitment to ensuring companies can employ and deploy the people they choose with minimal restrictions and red tape.”
Carolyn Fairbairn, CBI director-general, welcomed the additional detail but added: “Falling back on World Trade Organization rules would be damaging so the pressure is on to deliver the best possible deal, as well as a smooth and orderly exit.”