UK's drinks trade body calls for government to extend Article 50
The UK’s wine and drinks trade body has called for the deadline of the UK’s exit from the EU to be extended for a period of time after Prime Minister Theresa May’s Brexit proposals was voted down in a historic government defeat.
The Wine and Spirits Trade Association (WSTA) wants an extension to Article 50 to avoid a “hugely damanging” no-deal Brexit, in which the UK would crash out of the European bloc without a deal in place.
Chief executive of the WSTA Miles Beale reiterated the campaigning body’s position that a no-deal Brexit would be bad news for the UK’s drinks industry.
"As 55% of wine consumed in the UK is imported from the EU, and 45% of spirits exports are sent to the EU, businesses will need time to adapt to any new future trading arrangements, and time is running out," Beale said in a statement.
Earlier this week May’s May's Brexit deal, which laid out the terms of the UK's departure from the EU, was rejected by 230 votes - a crushing defeat and the biggest rejection of a proposal by a sitting government in UK history.
As a result the leader of the opposition Labour party Jeremy Corbyn tabled a motion of no confidence in May, which was narrowly defeated. Corbyn has now refused to enter into talks with May until she rules out the possibility of a no-deal departure. However, May has written to Corbyn telling him that ruling out a no-deal was an “impossible condition”. With no sign of the impasse being broken, pressure is now growing on Labour to consider a so-called people’s vote, or second referendum.
May is now due to make a statement to Parliament on Monday to update them on any progress, and what further steps she intends to take to secure a Brexit deal, and on January 29th MPs will be able to vote again on the proposal.
The UK is due to depart the EU on 29 March, and since the rejection of May's deal, the possibility of a no-deal Brexit looms large. The WSTA said that due to the scale of the government's defeat, it "seems clear now that extending Article 50 is necessary to ensure parliament can agree on the UK's future relationship with the EU".
The association has previously cautioned that a 'no-deal' Brexit scenario would mean the UK would lose access to the EU's excise movement control system (EMCS), which tracks alcohol coming into and going out of the country, and documents shipments electronically. If a deal is not reached before the UK departs the EU, "ports are likely to descend into chaos", the trade body added.