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South Wales Chamber of Commerce Connect. Effect. Grow Mid Wales Chamber of Commerce Connect. Effect. Grow EU REFERENDUM BRIEFINGS The British Chambers of Commerce has worked with the Vote Leave and Britain Stronger In Europe campaigns to produce a number of one-page briefings on business-critical issues. The topics were identified in focus groups held across the UK over Q4 2015 – Q1 2016. The briefings include background information on why each issue matters to business and presents the argument of each campaign side-by-side. Each campaign asked what businesses could expect from the future under their preferred referendum outcome. For more information contact: Elgan Morgan, Policy and Public Affairs Manager E: [email protected] T: 07814 652539
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Euro Referendum Briefings

Jul 30, 2016

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The British Chambers of Commerce has worked with the Vote Leave and Britain Stronger In Europe campaigns to produce a number of briefings on business-critical issues.
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Page 1: Euro Referendum Briefings

South WalesChamber of CommerceConnect. Effect. Grow

Mid WalesChamber of CommerceConnect. Effect. Grow

EU REFERENDUM BRIEFINGSThe British Chambers of Commerce has worked with the Vote Leave and Britain Stronger In Europe campaigns to produce a number of one-page briefings on business-critical issues.

The topics were identified in focus groups held across the UK over Q4 2015 – Q1 2016.

The briefings include background information on why each issue matters to business and presents the argument of each campaign side-by-side.

Each campaign asked what businesses could expect from the future under their preferred referendum outcome.

For more information contact:Elgan Morgan, Policy and Public Affairs ManagerE: [email protected] T: 07814 652539

Page 2: Euro Referendum Briefings

UK businesses believe that business regulation, whether homegrown or European in origin, has a significant impact on their prospects. There is a strong appetite amongst firms to identify where specific regulations and their associated costs originate from.

BRITISH CHAMBERS OF COMMERCE EU REFERENDUM BRIEFINGS

BUSINESS REGULATION As a member of the European Union, the UK currently adheres to a set of rules and regulations that govern the bloc's Single Market. In focus groups held at Chambers across the country over Q4 2015 - Q1 2016, businesspeople requested greater information on the regulatory environment and how it would change in the event of a remain or leave vote - with a particular focus on what they believe to be the costs and benefits of these rules.

www.britishchambers.org.uk | @britishchambers

*The official Leave campaign says:

For more information on the official Remain and Leave campaign positions on this and other issues please visit:

Vote Leave: www.voteleavetakecontrol.org

Britain Stronger In Europe: www.strongerin.co.uk

EU red tape cost UK businesses billions every year. Out of the EU, Britain would take back control of the regulations applied to UK businesses and we could regulate our economy in our own interests while substantially reducing the costs that businesses face. Damaging regulations would no longer need to apply, and the rules applicable to businesses would instead be decided by UK voters, the UK Government and Parliament.

Outside the EU, we will begin to repeal damaging ‘single market’ regulations We will be able to influence global standard-setting bodies more effectively and regain an influential voice on the world stage. Many EU rules are actually set at an international level. For example, the United Nations Economic Commission for Europe, which covers the continent plus North America and a substantial portion of Asia, sets standards in various fields such as vehicle safety. EU members have little influence on this because the Commission speaks for them, and is looking to supplant the UK in other global bodies.

“ Being in the single market makes it easier for businesses to export to the EU as they don’t have to follow multiple sets of regulations. It also ensures that Britain is at the table when the regulations that exporters have to follow are written, meaning our domestic industries’ interests are represented. If Britain were to leave, businesses would have to adhere to EU export rules, but these would be set by our continental competitors.

Furthermore, it is worth noting that studies which have looked at a cost-benefit analysis of EU regulation on business have shown that the benefits outweigh the costs. Leave campaigners often omit this fact, and fail to admit that many of the regulations which derive from European law would be retained if the UK were to leave.

“*The official Remain campaign says:

““

*The British Chambers of Commerce (BCC) is strictly neutral in the EU referendum debate. The BCC solicited material for this briefing from both official campaigns and the responses are reproduced here verbatim.

Page 3: Euro Referendum Briefings

Borders and customs boundaries play a central role in international trade. Be it goods or people, when legal frameworks or product standards differ on each side this generates a need for processes, such as proving origin/destination, compliance with local laws and taxes.

BRITISH CHAMBERS OF COMMERCE EU REFERENDUM BRIEFINGS

CUSTOMS AND BORDER MANAGEMENTAs a member of the European Union, the UK is part of a customs union, an important feature of the business environment when it comes to international trade. In focus groups held at Chambers across the country over Q4 2015 - Q1 2016 businesspeople asked for more clarity on how the UK's customs and border management arrangements will work in the event of a remain or leave vote, particularly in relation to the border between Northern Ireland and the Republic of Ireland.

www.britishchambers.org.uk | @britishchambers

*The official Leave Campaign says:

For more information on the official Remain and Leave campaign positions on this and other issues please visit:

Vote Leave: www.voteleavetakecontrol.org Britain Stronger In Europe: www.strongerin.co.uk

Countries all around the world have made mutual recognition agreements to sort out issues like customs inspections and monitoring. Customs authorities in many European countries such as Switzerland effectively cooperate with the EU. Outside of the EU, the UK will be in sole control of border checks. We will maintain the vital border controls necessary to prevent the movement of illegal migrants, terrorists and drugs, and to attack tax evasion. There is no reason this will lead to substantial delays or interfere with trade, any more than our existing border controls are a cause of delay.

There is no prospect of customs controls being introduced between Northern Ireland and the Republic of Ireland if we Vote Leave. There is clear precedent for this in EU law. The EU has already acknowledged the UK and Ireland have a special status. The UK and Ireland are permitted by the EU Treaties to retain the Common Travel Area. The Common Travel Area has been enshrined in UK law since before we joined the EU. It does not depend on EU membership and would continue.

“ If we remain in the EU we will continue to have control of our borders, maintain our special status in the EU which keeps us out of the Schengen Agreement passport-free area, while ensuring that people are able to travel conveniently into the EU, and between Northern Ireland and the Republic of Ireland, for work or pleasure.

It will also mean there will be no duties on imports from the European Union at our borders – meaning cheaper stock for retail businesses, and inputs for manufacturers who rely on goods from other EU countries as part of their supply chain.

Vote Leave’s Nigel Lawson has admitted that leaving the EU would mean the return of “border posts” between the UK and the Republic of Ireland. The prospect of a new ‘hard border’ of this kind is one that many are legitimately concerned about.

*The official Remain Campaign says:*“

*The British Chambers of Commerce (BCC) is strictly neutral in the EU referendum debate. The BCC solicited material for this briefing from both official campaigns and the responses are reproduced here verbatim.

Page 4: Euro Referendum Briefings

Our financial services are a vital part of our economy, and benefit greatly from the ability to ‘passport’ services to other single market countries. This would be under threat if Britain left. There is no arrangement for the UK outside the EU which would provide ‘passporting’ rights for UK financial services. Consider that Switzerland, which is outside the EU, pays in to the EU budget and accepts free movement, does not have passporting rights. The future of the City of London would be under threat from competitors since firms would be forced to set up offices in other EU countries if they want to continue to access that market. Ultimately some firms could choose to relocate their head offices from the UK.

Were we to remain in the EU, our financial services would continue to enjoy the benefits of passporting, as well as benefitting from the new safeguards secured in the Prime Minister’s renegotiation to protect our financial services.

Financial services are an important sector of the UK economy. Many of the world’s largest financial companies are based here. It employs around 4% of the UK workforce; produces 8% of UK economic output; contributes about 12% of UK taxes and in Q1 2016 generated a surplus of exports over imports of around £10bn.

BRITISH CHAMBERS OF COMMERCE EU REFERENDUM BRIEFINGS

FINANCIAL SERVICES & THE CITY OF LONDONRelative to its size, the UK has a large, sophisticated, and internationally-oriented financial services sector. In its own right it is important as a source of economic growth, taxation, export revenue and employment. Whether linked into the supply chains of this industry or not, all firms are affected by the availability and prices of the products and services it provides. In focus groups held across the UK over Q4 2015 – Q1 2016, businesspeople wanted more clarity on how either referendum outcome would impact on financial services – especially the future regulatory and market-access implications for the sector in either case.

www.britishchambers.org.uk | @britishchambers

For more information on the official Remain and Leave campaign positions on this and other issues please visit:

Vote Leave: www.voteleavetakecontrol.org

Britain Stronger in Europe: www.strongerin.co.uk

*The official Leave campaign says:

*The official Remain campaign says:

“After we leave the EU the City of London will remain the financial capital of Europe.

EU regulation of the City is harming the financial sector. The Solvency II Directive, for example, has been estimated to have a €34bn cost for the insurance industry.

There is no realistic prospect of EU countries impeding the free movement of capital or payments between the UK and the EU after a vote to leave. Article 63 of TFEU provides that: ‘all restrictions on the movement of capital between Member States and between Member States and third countries shall be abolished... all restrictions on payments between Member States and third countries shall be prohibited’.

It will be in the interests of EU negotiators for the UK to retain ‘passporting’ rights, as key European firms ‘passport’ their services into London. EU negotiators would be unlikely to jeopardise the access of financial firms based in the EU to the City of London.

*The British Chambers of Commerce (BCC) is strictly neutral in the EU referendum debate. The BCC solicited material for this briefing from both official campaigns and the responses are reproduced here verbatim.

Page 5: Euro Referendum Briefings

Being in the EU makes it easier for businesses to employ people with the skills they need to be competitive. European funding helps deliver apprenticeships and skills programmes. It also allows employees to move between offices for companies based in several EU countries.

It’s vital, however, that immigration is controlled. That’s why we have kept out of the Schengen area, keeping control of our borders. And it’s why the Government’s renegotiation took action to limit in-work benefits access. That ensures the system is fair, and welcomes people who come here to work hard, pay their taxes and contribute to our economy, public services and society. Ending free movement would mean we would lose access to the single market meaning prices would rise and jobs would be lost, according to HM Treasury’s research. It would also mean that Brits looking to travel to the continent could need to apply for visas.

Effective labour markets and access to talent is crucial for businesses to thrive. The impact of leaving or remaining in the EU on British jobs and wages depends on the interplay between a number of factors including trade, investment and immigration.

BRITISH CHAMBERS OF COMMERCE EU REFERENDUM BRIEFINGS

LABOUR, SKILLS, AND MIGRATION In focus groups held across the country over Q4 2015 - Q1 2016, Chamber members identified access to skills - both from inside and outside the EU - as a key issue. Firms want greater clarity on the impact of the referendum on both their existing workforce and the future hiring needs.

www.britishchambers.org.uk | @britishchambers

If the UK left the EU, nobody from other EU countries would be removed from the UK and no UK citizens would be forced to leave other European countries. The EU’s own Charter of Fundamental Rights would prevent the collective expulsion of British citizens from the EU.

We will have a sensible regime for the movement of people that allows us to replace the immigration policy we have now - a combination of an open door for low-skilled labour while simultaneously stopping highly-skilled people from outside the EU coming to the UK to contribute. Criminals could be banned and we could explicitly fast-track those with skills to come to Britain and work here.

Outside the EU, the UK Government could introduce an immigration system that is fair and works for the UK’s economic interests.

For more information on the official Remain and Leave campaign positions on this and other issues please visit:

Vote Leave: www.voteleavetakecontrol.org Britain Stronger In Europe: www.strongerin.co.uk

*The official Leave campaign says:

*The official Remain campaign says:

“ “

*The British Chambers of Commerce (BCC) is strictly neutral in the EU referendum debate. The BCC solicited material for this briefing from both official campaigns and the responses are reproduced here verbatim.

Page 6: Euro Referendum Briefings

The UK is one of the world’s most open economies with the combined value of exports and imports equal to 60% of GDP. The prices that businesses pay for inputs and the revenue received for their outputs are central to the performance of British firms and the wider economy.

BRITISH CHAMBERS OF COMMERCE EU REFERENDUM BRIEFINGS

PRICES AND CURRENCY Membership of the EU affects the prices businesses pay, and can charge, for goods and services traded across borders. This happens through several channels; the impact of regulation; common customs requirements; zero tariffs within the Single Market but common duties imposed on trade outwith it; the impact of competition. These influences are not static but constantly evolving. As the UK is not a member of the Eurozone the value of Sterling is also important. In focus groups held across the UK over Q4 2015 – Q1 2016, businesspeople wanted more clarity on how either referendum outcome would impact prices through these channels in the future.

www.britishchambers.org.uk | @britishchambers

*The official Remain campaign says:

For more information on the official Remain and Leave campaign positions on this and other issues please visit:

Vote Leave: www.voteleavetakecontrol.org

Britain Stronger In Europe: www.strongerin.co.uk

*The official Leave campaign says:

“There is no evidence that the course of this referendum is having a substantial effect on the currency or is driving movements in the foreign exchange markets.

It is unlikely that there will be any substantial effect on the currency from leaving the EU. The UK will retain its powers over monetary policy, keep sterling, and take back control of the regulation of financial stability.

Outside the EU, we will be able to strike free trade agreements with emerging economies, such as Brazil, India and China. This is likely to reduce prices for consumers.

EU membership increases the costs of consumer goods. The EU’s Common Agricultural Policy artificially inflates food prices and consumer prices for other goods imported from outside the EU are raised as a result of the common external tariff and nontariff barriers to trade imposed by the EU.

A vote to remain in the EU will help to maintain a stable currency and low prices. The absence of import duties on goods from the EU combined with increased competition from being part of a market of 500 million drives down prices for consumers. This is supported by a wide range of independent, expert evidence.

As fluctuations in the currency market have shown, the uncertainty around a British exit from the EU could have an impact on sterling and inward investment, potentially lasting for years as a new deal is negotiated. Furthermore, potential import duties could increase costs for businesses and consumers while longer-term regulatory divergence would increase costs further.

*The British Chambers of Commerce (BCC) is strictly neutral in the EU referendum debate. The BCC solicited material for this briefing from both official campaigns and the responses are reproduced here verbatim.

Page 7: Euro Referendum Briefings

Of the funds received by the UK from the EU budget in 2015, 28% (around £1.25bn) was from structural funds for economic development. These are used to co-finance local and national programmes including business support. Separately, the EU’s investment bank (EIB) invested Euro 7.8bn in UK infrastructure, research and education.

BRITISH CHAMBERS OF COMMERCE EU REFERENDUM BRIEFINGS

REGIONAL DEVELOPMENT FUNDINGIn focus groups held at Chambers across the country over Q4 2015 - Q1 2016, the role that EU funds play in local and regional economic development was raised. Currently, EU monies drawn down by the UK form part of the funding mix for economic development. Some parts of the UK receive additional 'convergence' or 'transition' funding aimed at closing the economic gap with wealthier EU regions. In 2016, Cornwall; Northern Ireland; Wales; parts of northern England and the Highlands and Islands of Scotland were in receipt of such monies. EU funding programmes are reviewed every five years so for both referendum outcomes our focus groups wanted to see more clarity about how infrastructure, training and other initiatives would be supported with non-private sector funds in the future.

www.britishchambers.org.uk | @britishchambers

*The official Leave campaign says:

For more information on the official Remain and Leave campaign positions on this and other issues please visit:

Vote Leave: www.voteleavetakecontrol.org Britain Stronger In Europe: www.strongerin.co.uk

Outside the EU, we will be able to spend our money on our priorities. The UK could maintain or increase the funding provided to specific regions and for infrastructure which currently comes through the EU.

The UK fares very badly from the regional development and structural funds systems. Despite being one of the largest contributors to the EU budget, in 2014, wealthy EU member states, including Germany, Spain, Portugal, Italy and France, received more in structural funds than the UK. As a percentage of gross national income, only Denmark and the Netherlands received less than the UK.

““Britain will continue to benefit from European funding to our regions if we remain in, maintaining the support which helps to deliver skills and other projects all over the UK. Leaving would mean complete uncertainty about how much, if any of this funding, would be kept.

Analysis by Oxford Economics shows that leaving would harm the UK economy, which would have a knock on effect on tax revenues and public spending. It is therefore wholly unrealistic to suggest, as leave campaigns do, that there would be a net saving if we were to leave.

*The official Remain campaign says:

““

*The British Chambers of Commerce (BCC) is strictly neutral in the EU referendum debate. The BCC solicited material for this briefing from both official campaigns and the responses are reproduced here verbatim.

Page 8: Euro Referendum Briefings

A vote to remain means we can continue to work together with other European countries on tax issues - co-operating to make improvements on tax issues like the VAT treatment of cross-border transactions as part of the EU VAT Forum. This has already included projects like the pilot scheme allowing people to request advanced rulings on what VAT will be due on complex cross-border transactions.

An economy’s openness to international trade has a big influence over the incidence and administration of tax - through tax competition and resolving liability issues arising from cross-border transactions. Co-operation to combat tax evasion is a growing influence on administration, with both EU rules and bilateral treaties having some impact.

BRITISH CHAMBERS OF COMMERCE EU REFERENDUM BRIEFINGS

BUSINESS TAXATIONThe UK tax system is affected by EU law via three main channels; rules that stipulate when to levy indirect taxes (and to some extent, within what range), most notably the VAT Directive; rules that assign tax liability in cross-border transactions – these include VAT but also the Parent-Subsidiary and Interest-Royalties Directives concerned with eliminating double taxation on the payment of dividends, interest and royalties; and rules for information disclosure and reporting of corporate and personal incomes. These rules have evolved over time and will continue to do so. In focus groups held across the UK over Q4 2015 – Q1 2016, businesspeople wanted more clarity on how the UK tax system would evolve in the future under either referendum outcome.

www.britishchambers.org.uk | @britishchambers

Our VAT rules would no longer be determined by EU law. Outside the EU’s common system of VAT, we could simplify VAT rules substantially.

The current system encourages complex schemes of tax evasion, including acquisition frauds and carousel frauds. These frauds are very costly to legitimate business.

The current system gives far too much power to the European Court. This creates uncertainty for business. On 4 June 2015, the European Court ruled that the UK’s reduced rate of VAT of 5% on ‘energy saving materials’ was contrary to EU law. The Government is now proposing to raise VAT to 20% on energy saving materials, which will cost the sector £310 million between 2016-2017 and 2021-2022.

*The official Leave campaign says: *The official Remain campaign says:

“ “

For more information on the official Remain and Leave campaign positions on this and other issues please visit:

Vote Leave: www.voteleavetakecontrol.org Britain Stronger In Europe: www.strongerin.co.uk

*The British Chambers of Commerce (BCC) is strictly neutral in the EU referendum debate. The BCC solicited material for this briefing from both official campaigns and the responses are reproduced here verbatim.

Page 9: Euro Referendum Briefings

The UK is one of the world’s most open economies with the combined value of exports and imports equal to 60% of GDP. EU states, collectively, receive 45% of what the UK exports overseas by value, and account for 53% of imports into the UK.

BRITISH CHAMBERS OF COMMERCE EU REFERENDUM BRIEFINGS

TRADE WITH EUROPEAN UNION MEMBER STATESFocus groups held at Chambers across the country over Q4 2015 - Q1 2016 regarded the UK's future trading relationship with EU states as a core issue for this referendum. For some, it was mostly about EU states as markets for exports; for others it was about imports, cross-border investment or supply chains. All demanded more clarity on what either referendum outcome would mean for trade with EU member countries in the future - especially for regulatory burdens, treatment of services, competition and costs.

www.britishchambers.org.uk | @britishchambers

*The official Leave campaign says:

For more information on the official Remain and Leave campaign positions on this and other

issues please visit: Vote Leave: www.voteleavetakecontrol.org

Britain Stronger In Europe: www.strongerin.co.uk

Outside of the EU we will continue to trade with other EU members and enjoy tariff-free access to the Single Market. We will no longer be subject to the supremacy of EU law or the jurisdiction of the European Court. There is a European free trade zone from Iceland to Turkey which the UK will be part of. The UK is the EU’s largest single export market - this means it is in the EU’s interests to strike a free trade deal as soon as possible.

We will negotiate a new UK-EU deal based on free trade and friendly cooperation. It will borrow some of what is in other deals but adapting things to suit us and our European friends. Switzerland trades more with Europe than we do but they don’t think they need to be in the EU to do so. The deal with Canada shows we can have a comprehensive free trade agreement covering goods and services without accepting the supremacy of EU law, the free movement of persons or paying billions to Brussels each year. Our deal will be even better.

Remaining in the EU will mean continuing our unfettered access to the 500-million-person single market in both goods and services. Being in the single market is the best possible trading arrangement on offer to the UK, with full market access, influence over regulations and zero tariffs. There is no free trade agreement that can replicate these benefits.

Within the EU, businesses will also be able to continue benefiting from the free trade agreements the EU has reached with countries around the world, with deals already in place with over 50 countries, and more to come, like the U.S. or Japan. This will boost GDP and open up global markets, therefore increasing trade opportunities. By working together with other European countries we ensure we have as much weight in negotiations as possible, so we can keep on reaching deals that work for British businesses.

“*The official Remain campaign says:

*The British Chambers of Commerce (BCC) is strictly neutral in the EU referendum debate. The BCC solicited material for this briefing from both official campaigns and the responses are reproduced here verbatim.

Page 10: Euro Referendum Briefings

The UK is one of the world’s most open economies with the combined value of exports and imports equal to 60% of GDP. Non-EU states, collectively, receive 55% of what the UK exports overseas by value, and account for 47% of imports into the UK.

BRITISH CHAMBERS OF COMMERCE EU REFERENDUM BRIEFINGS

TRADE WITH NON-EU MEMBER STATES WITH EXISTING EU TRADE AGREEMENTS

Focus groups held across the country over Q4 2015 - Q1 2016 raised the UK's future trading relationship with non-EU states as a core issue for this referendum. Trade agreements, which are negotiated by the European Commission for the EU as a whole, are in place with some of these countries. They stipulate preferential terms for international trade and typically cover import/export duties, customs requirements and product standards. Our focus groups demanded clarity on what would happen to existing free trade agreements in the event of a 'remain' or 'leave' vote.

www.britishchambers.org.uk | @britishchambers

*The official Leave campaign says:

For more information on the official Remain and Leave campaign positions on this and other issues please visit:

Vote Leave: www.voteleavetakecontrol.org Britain Stronger In Europe: www.strongerin.co.uk

A vote to leave will, in and of itself, have no legal consequences for the continued applicability of third-country trade agreements to the UK. After the vote, the UK can begin negotiations to maintain existing third-country agreements or improve upon them immediately.

It will be in the interests of third countries to maintain existing agreements with the UK. If the UK makes clear it wants existing agreements to be maintained on current terms, there is little cause to think any third country with which the EU currently has a free trade agreement would disagree.

The UK would also improve upon the trade agreements that the EU has negotiated. The EU’s trade deals are relatively unlikely to include services. Whereas 90% of Chile, South Korea, Singapore and Switzerland’s free trade agreements include services, just 68% of the EU’s trade agreements do.

Remaining in the EU will mean continuing our unfettered access to the 500-million-person single market in both goods and services. Being in the single market is the best possible trading arrangement on offer to the UK, with full market access, influence over regulations and zero tariffs. There is no free trade agreement that can replicate these benefits.

Within the EU, businesses will also be able to continue benefiting from the free trade agreements the EU has reached with countries around the world, with deals already in place with over 50 countries, and more to come, like the U.S. or Japan. This will boost GDP and open up global markets, therefore increasing trade opportunities. By working together with other European countries we ensure we have as much weight in negotiations as possible, so we can keep on reaching deals that work for British businesses.

*The official Remain campaign says:

*The British Chambers of Commerce (BCC) is strictly neutral in the EU referendum debate. The BCC solicited material for this briefing from both official campaigns and the responses are reproduced here verbatim.

Page 11: Euro Referendum Briefings

The UK is one of the world’s most open economies with the combined value of exports and imports equal to 60% of GDP. Non-EU states, collectively, receive 55% of what the UK exports overseas by value, and account for 47% of imports into the UK.

BRITISH CHAMBERS OF COMMERCE EU REFERENDUM BRIEFINGS

TRADE WITH NON-EU MEMBER STATES WITHOUT EXISTING EU TRADE AGREEMENTS

Focus groups held at Chambers across the country over Q4 2015 - Q1 2016 raised the UK's future trading relationship with non-EU states as a core issue for this referendum. Trade agreements, which are currently negotiated by the European Commission for the EU as a whole, are in place with some of these countries. They stipulate preferential terms for international trade and typically cover import/export duties, customs requirements and product standards. But some major markets, including the US, are not currently covered. Our focus group demanded more clarity on how the referendum would impact on future international agreements covering trade with UK-based firms.

www.britishchambers.org.uk | @britishchambers

*The official Leave campaign says:

For more information on the official Remain and Leave campaign positions on this and other issues please visit:

Vote Leave: www.voteleavetakecontrol.org Britain Stronger In Europe: www.strongerin.co.uk

Outside the EU, the UK will take back control of powers to secure its own free trade agreements. The majority of our exports now go to countries that are not members of the EU.

The UK is likely to conclude far more valuable free trade agreements outside the EU. In 2015, the aggregate GDP of all the countries with which the EU had a trade agreement in force was $7.7 trillion. By contrast, the aggregate GDP of all countries with which Chile had trade agreements was $58.3 trillion. The figure for South Korea was $40.8 trillion and for Switzerland it was $39.8 trillion.

It is likely that new agreements will be concluded relatively rapidly. The US-Australia Free Trade Agreement, for example, was concluded in less than two years. Likewise, the Switzerland-China free trade agreement was negotiated in a little over two years.

Remaining in the EU will mean continuing our unfettered access to the 500-million-person single market in both goods and services. Being in the single market is the best possible trading arrangement on offer to the UK, with full market access, influence over regulations and zero tariffs. There is no free trade agreement that can replicate these benefits.

Within the EU, businesses will also be able to continue benefiting from the free trade agreements the EU has reached with countries around the world, with deals already in place with over 50 countries, and more to come, like the U.S. or Japan. This will boost GDP and open up global markets, therefore increasing trade opportunities. By working together with other European countries we ensure we have as much weight in negotiations as possible, so we can keep on reaching deals that work for British businesses.

*The official Remain campaign says:

*The British Chambers of Commerce (BCC) is strictly neutral in the EU referendum debate. The BCC solicited material for this briefing from both official campaigns and the responses are reproduced here verbatim.