LONDON, Dec. 8 (Xinhua) -- British businesses welcomed the success of Brexit talks between the government and the European Union (EU), but said the trade talks that this success heralds will be "crucial".
Britain and the EU announced a breakthrough in Brexit talks Friday with an agreed document covering issues such as the border between Northern Ireland and the Irish Republic as well as the future status of 3 million Europeans living in Britain.
SIGH OF RELIEF
Agreement on this document opens the door for further discussions, which will now be centered on trade.
"Businesses will have heaved a huge sigh of relief that agreement has been made," Suren Thiru, chief economist with industry representative body British Chambers of Commerce (BCC) told Xinhua on Friday evening.
He added: "What businesses are really interested in is the start of the trade talks -- that is crucial. Trade talks also affect the transition period as well."
"Businesses welcome the announcement but there is a lot more work to be done," said the economist.
The news from Brussels of negotiations moving forward would "lift the spirits of businesses in the run-up to Christmas", said Josh Hardie, deputy director of industry body the CBI.
Hardie said that talks now needed to build on Britain's 40-year-long membership of the EU and to create a new relationship through trade talks that put "jobs and living standards at the heart of every negotiating objective".
Hardie called for clarity over Britain's transition out of the EU: "Concrete assurances will build confidence and help firms across the UK and Europe to pause their contingency planning."
He said: "The government has shown the impact of being determined to focus on securing a good Brexit for jobs. Discussions will continue to be tough, but today's progress shows that careless talk of walking away can be replaced by confidence that the UK can get a good deal."
PLEA FOR FREE-TRADE AGREEMENT
Britain's financial sector is centered on the City of London and City of London Corporation (CLC) policy chairman Catherine McGuinness said "the hard work starts now".
"Britain's future trading relationship with the EU will mark one of the most important pieces of legislation in a century, it is vital we get it right first time," she said.
An off-the-shelf trade deal, or one that is based on enhanced equivalence, would not "cut the mustard" said McGuinness.
"Instead, the new trading relationship should be based on a free trade agreement, introducing a joint dispute resolution body and mechanisms for mutual market access. It would be based on regulatory alignment with both parties working to implement new global and international standards, replacing existing regulatory frameworks."
McGuinness called for a transitional deal rather than a clean break in March 2019, and for the clarification of timelines of when the transition phase will begin, and "what rules will apply to Britain in the interim. We need an indication of when the sector can expect to adopt the new rules."
The chief executive of Lloyd's insurance Inga Beale, said: "We are pleased that the Brexit talks can now enter the second phase focusing on trade."
Lloyd's is one of the leading City of London financial sector businesses, with a long history and a ranking among the world's top insurance markets.
Beale said: "The insurance sector still urgently needs certainty on the UK's future trading relationship with the EU."
The London Market Group (LMG) representing the insurance sector had proposing a free-trade agreement that would permit mutual market access and recognition of both the EU and Britain's prudential regimes.
Beale said that the priority must be to ensure mutual insurance and reinsurance market access once the UK leaves the EU.
"If the LMG's proposals are adopted neither the EU nor UK would have to sacrifice market access or control over their respective regulatory regimes," she said.
Beale called for an agreement that "puts in place a sensible transition period and a broad and expansive post-Brexit free trade agreement".
In March this year Lloyd's announced it would open an office in Brussels to deal with business inside the 27 EU and three European Economic Area (EEA) states after once the Brexit and possible transition process is over, and Beale said plans to open that office would continue.
NO-DEAL CHANCE REDUCED
The advent of trade talks moved the Brexit process forward with some clarity, but now offered the prospect of hard bargaining over trade.
Professor Anand Menon, director of the London-based think-tank The UK in a Changing Europe, said that "nothing is agreed until everything is agreed".
Menon said: "Significant progress has clearly been made... but at some point it will become clear that we can't use cash to get a good trade deal. Overall my sense is this progress report reduces the chance of both no deal and no Brexit."
