Brexit transition extension vital amid coronavirus 'catastrophe' says CBI

The Confederation of British Industry said the numbers show the importance of a good Brexit deal with the European Union, which must put services, such as financial and insurance activities, "at the heart" of future trading.

Opposition parties are urging the Government to seek an extension to the current transition period in light of the "catastrophic economic impact" of the coronavirus outbreak.

Data from the Office for National Statistics, published for the first time, shows Sheffield imported services worth £274 million in 2017, excluding travel.

This means EU trade made up 41.3 per cent of services, with the rest of the world responsible for the remaining £389 million.

In total, the UK's services trade with the bloc was worth £87 billion in 2017 – 48 per cent of international services imports.

The CBI said services are "essential to our prosperity in towns up and down the country," though often invisible to our daily life.

Nicole Sykes, the lobby group’s head of UK-EU negotiations, said: “These figures show clearly that trade with the EU, especially in services, makes it really important we get a good services deal.

"Services must be at the heart of that because it's such a national strength. We have to protect that in the weeks ahead as we look to look past coronavirus and think about restarting, reviving and renewing our economy."

Though the value of the travel industry for Sheffield is not available, figures show it was the largest type of EU service import to Yorkshire and the Humber, and is worth £2.42 billion.

This was followed by financial and insurance activities, with a value of £757 million.

The Brexit transition period is due to finish at the end of 2020, but any extension request would have to happen before the June 30 deadline.

The Liberal Democrats said an extension was the "only sensible option", to allow time for proper negotiations, but the Prime Minister has said he has no intention of doing so.

The party’s international trade spokeswoman, Sarah Olney, said: "These figures once again illustrate the importance of our trading relationship with the EU.

"Ministers should be doing everything in their power to protect the economy from further shocks including the potentially devastating impact of a no-deal Brexit."

A government spokesman said that since 2000, UK imports of services from the rest of the world has increased faster than those from the EU.

He added: “As a new independent trading nation, we will have the opportunity to strike free trade agreements which will be a key driver in levelling up the UK, benefiting every region and nation.

“The transition period ends on December 31 2020, as enshrined in EU law, which the Prime Minister has made clear he has no intention of changing.”

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