Brexit threatens $590 billion in investment, US business group warns

The largest US business lobby group has warned that American companies with nearly $600 billion of investments in Britain are reviewing their plans for expansion in the country amid concerns over its post-Brexit access to the European Union’s single market.

According to Press TV, the US Chamber of Commerce, the world’s largest national business lobby group that represents companies with investments worth some $590 billion in the UK, warned that a post-Brexit UK would need “unfettered access” to the EU market to retain and attract US investments.

The warning was expressed in a document due to be presented to the UK’s Cabinet Office this week. A briefing note was presented to British and EU ambassadors in Washington on Friday. It follows similar warnings from the Japanese business community.

If the UK loses its access to the single market, the resulting increase in the costs of doing business and exporting to the EU would hurt Britain’s competitive position in Europe.

“Ultimately, these costs are likely to be borne by British workers and consumers,” the chamber said. “Already some US businesses have indicated that without continued seamless free market access to Europe, investment and hiring decisions likely would favor other locations.”

Marjorie Chorlins, the Chamber’s Vice-President for European Affairs, said uncertainty about the terms of Brexit was pushing American companies to make long-term “contingency plans” that involved expanding outside Britain.

“They are looking long and hard at whether it makes sense to continue to expand their investment in the UK,” she said.

The business group also dismissed the claims of Brexiters who argue the cost of leaving the EU’s single market would be low due to relatively low EU external tariffs.

ME