13:35 GMT02 July 2020
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    Many UK companies may decide to relocate to the European Union amid uncertainty caused by the United Kingdom leaving the EU single market, a member of the European Parliament’s Committee on International Trade from the United Kingdom David Martin told Sputnik.

    MOSCOW (Sputnik) On Tuesday, UK Prime Minister Theresa May during her speech on Brexit process realization announced that the United Kingdom would leave the EU single market following exit from the European Union and focus would be made on bilateral free trade deals with the EU member states. Furthermore, London would withdraw from the EU Customs Union and jurisdiction of the European Court of Justice.

    “The main risk is uncertainty for British business. The government has lofty ambitions to be a ‘Global Britain’ but they will almost certainly come up against many unforeseen obstacles and time is against them. Many UK businesses may simply choose to relocate to the EU,” Martin said.

    Martin noted that around 44 percent of British exports go to the Single Market of the European Union and the EU leaders' clear a statement that any future deal with the UK cannot compare with a deal as a full membership.

    “Therefore, a significant proportion of these exports will be put at risk. UK exporters also benefit from the many trade deals that the EU will have in place, which will take many years to renegotiate and replace,” Martin added.

    May announced that the United Kingdom would invoke Article 50 of the Lisbon Treaty, which will start Brexit negotiations, by the end of this March, after the majority of votes in a June referendum were given in favor of leaving the European Union. On November 3, the UK High Court ruled that the UK government needs parliamentary approval before the initiation of the Brexit procedures. The UK Supreme Court is yet to make a final decision on the issue on Tuesday.

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