Shropshire business leaders welcome progress over EU trade talks

They said businesses have been worried about the delay in negotiations, and they are pleased that talks on future trading are to take place.

It comes as Theresa May said the UK will seek to sign trade deals with other countries despite potentially being bound by European Union rules for around two years after Brexit.

The Prime Minister said that despite leaving the single market and customs union she wants "access to one another's markets" to continue "as now" during an implementation period.

The EU's guidelines say that during any transition period the UK would have to comply with the bloc's trade policy – preventing it from striking its own deals with other countries.

But Mrs May said the UK wants to sign agreements which would come into force after the "strictly time-limited" period has ended.

Richard Sheehan, chief executive of Shropshire Chamber of Commerce, said: "Business will be pleased that we finally seem to be making progress towards trade negotiations and solutions around the movement of people within the EU/UK borders.

"We can be under no illusion that the current uncertainty around the rights to live and work in the UK for EU nationals is having a significant impact on business and their ability to recruit and retain overseas talent.

"The government must recognise that Shropshire businesses already reach out around the world, providing goods and services that deliver high levels of economic growth for our county, therefore any restrictions placed on trade by EU policy must be vigorously challenged."

Val Edwards, from Shrewsbury solicitors firm Hatchers, who is also part of Shrewsbury Business Chamber, said: “Shrewsbury Business Chamber, like nearly all business organisations, has been deeply worried about the delay in negotiations and they are pleased that the talks on the future trading relationship are about to commence.

"As has been seen from the talks so far both sides have adopted negotiating stances and made quite tough statements about what they want and will require but in the end the agreements made are compromises.

"Whether Monsieur Barnier will agree to everything the UK wants seems highly unlikely and the chamber’s expectation is that in order to continue to trade with the EU British companies will need to adhere to most EU Regulations.

"The hope for business is that whatever deal is struck will be as near as possible the Prime Minister’s hope and that the deal will be done swiftly. Uncertainty is the killer to investment and we are already seeing companies in Shrewsbury holding off investment decisions until the picture becomes clearer.”

A meeting of the Brexit "war cabinet" – formally called the Cabinet European Union Exit and Trade Committee – took place yesterday, with a full cabinet today, as ministers formally consider the relationship the Government wants with the EU.