European manufacturers risk becoming 'economic collateral damage' if the Brexit stalemate continues.

Industry leaders said transitional arrangements must be delivered by the end of the year or supply chains are at risk of being irrevocably harmed.

Members of Ceemet, which represents more than 200,000 firms across Europe, want single market and customs union arrangements to remain in place during the temporary period.

READ MORE: TUC report recommends measures to improve Norfolk and Suffolk's manufacturing sectorREAD MORE: What could the future hold for East Anglia's manufacturing industry?Director general Uwe Combuchen said: 'EU and UK negotiators have a responsibility to ensure minimal disruption for businesses, for employers and employees and avoid a lose-lose situation for manufacturers.

'That is why companies across the continent want to see swift progress on transitional arrangements to avoid unintended consequences and economic collateral damage arising from a failure to agree an orderly exit.'

Freedom of movement should continue and along with standard regulations during the transitional arrangements, the industry warned.

Terry Scuoler, chief executive of UK manufacturers' organisation EEF, said clarity was needed on a transition by the end of the year.

'As manufacturers we will continue to press hard for a smooth and orderly Brexit,' he said.

'A transitional period of at least two years remains a must for the sector.

'European businesses are making it clear that they too want a clear transition period delivered as soon as possible.

'The logjam in negotiations could damage industry unless there is a breakthrough on a transition deal.

'Clarity over this transition is essential to business both in the UK and the EU so we can continue to deliver prosperity and investment in jobs alongside economic growth.'

Liberal Democrat leader Sir Vince Cable said: 'Manufacturers and industry across the EU need guarantees, but the government is increasingly heading for a no deal Brexit that will badly damage us for decades.

'A transition is at least better than no deal, but it must be a transition to a deal that effectively keeps the UK within the single market and customs union.'