ICAS urges UK Government to strike a Brexit deal “significantly better” than Canada’s deal with Europe

The accountancy body The Institute of Chartered Accountants of Scotland (ICAS) has urged the UK Government to secure a Brexit deal which is “significantly better” than the CETA agreement struck between Canada and the EU.

ICAS’ comments are based on evidence in an independent report which the Institute commissioned from Canadian experts who were close to the CETA negotiations.

It also follows comments made by EU negotiator Michel Barnier who warned recently that Britain should expect a trade deal little better than CETA – and it would take years to negotiate.

Bruce Cartwright CA, executive director of Policy for ICAS, said: “Our independent report evidences that while CETA is a good baseline, it doesn’t go nearly far enough to represent the right deal for British business.

“In particular, it comes up short on services, which make up a substantial and valuable part of the UK economy.

“The British negotiating team needs to learn from the Canada experience and deliver a deal which goes considerably beyond CETA. We also believe that the evidence laid out in this ICAS commissioned report could be crucial in reducing the length of time it takes to strike a deal by providing pointers to where agreed elements of CETA could be lifted and applied to Brexit.”

Mike McKeon CA, Chair of the ICAS Brexit Advisory Board, added: “ICAS believes this is an important contribution to the ongoing debate on what the UK should be seeking in its post Brexit relationships with the remaining EU 27.”

The report highlights how Canada still does not have a ratified deal on financial services; shows how the CETA deal only secured temporary entry for professional services into Europe; and points to the importance of “negative lists” which mean that everything is in unless it is specifically agreed as out.

The ICAS report “CETA, Brexit and Beyond” by Dr James Ogilvy looks at lessons to be learned from the Comprehensive Economic and Trade Agreement (CETA) and its usefulness as a model for Brexit.

Dr Ogilvy had a privileged position as a close observer of the Canadian EU negotiations when he worked as an advisor for the Government of Alberta. His work highlights a number of subject areas that are covered by CETA and relates them to the circumstances of the UK.