The Business, Energy and Industrial Strategy (BEIS) Committee is asking for any Government to hold closest possible relationship using the existing EU regulatory and trading framework to give UK volume car manufacturing a genuine prospects for survival post-Brexit.
In a written report published recently for the impact of Brexit to the automotive sector, the BEIS Committee says a no-deal puts tens of thousands of UK jobs in danger and threatens vast sums of pounds of inward investment.
The Society of Motor Manufacturers and Traders (SMMT) estimated enhancing trade barriers to start a 4.5bn stop by exports while other studies pointed to some greater decline.
The report finds that non-tariff barriers, available as border delays and increased bureaucracy, will likely have an effect on UK competitiveness. The report stands out on the Government places an increased premium rolling around in its Brexit negotiations on securing frictionless trade to the automotive sector.
Rachel Reeves MP, Chair of your Business, Energy and Industrial Strategy (BEIS) Committee, said:”The car market is among the list of UK’s great manufacturing successes. Innovative and efficient car plants around the world provide many jobs as well as automotive sector is often a major contributor to our economic growth. There is no credible argument to point out there are advantages to be gained from Brexit for that UK car industry.
“Regulatory consistency and friction-free trade benefits car companies, consumers and car-workers. The main Minister now needs to ensure common-sense pragmatism prevails and stipulate the Government’s intention to get continued regulatory and trading alignment with the EU from the automotive sector.”
The UK automotive information mill largely export-led with Europe as being the primary market. The market is likewise probably the most closely integrated sectors together with the EU. England automotive sector’s success is made over the complex supply chains that stretch throughout Europe: typically, parts are transferred through different countries prior to being assembled into the final product.
The report studies potential opportunities as a result of Brexit, but finds it unrealistic to expect an growth of trade overseas to outweigh the losing of trade to Europe because of a painful Brexit. The report also states that any new bilateral trade deals secured through the Government are unlikely to steer instantly to an important boost in investment and jobs in the UK automotive sector.
The Committee found out that retaining good accessibility to the single sector is a bigger factor than securing the freedom to secure new trade relates to third countries.
The report stands out on the Government seeks from the negotiations to preserve existing arrangements for any certification of vehicles throughout the EU, either as an element of a Mutual Recognition Agreement or some alternative arrangement. Enhance trade opportunities with the EU C britain’s biggest trading partner C as well as provide certainty to global manufacturers, the costa rica government should also seek to retain regulatory alignment together with the EU regulatory framework for your short to medium term.