The Business, Energy and Industrial Strategy (BEIS) Committee is looking for that Government to prevent closest possible relationship using the existing EU regulatory and trading framework to offer UK volume car manufacturing a sensible chance of survival post-Brexit.
In a survey published recently over the impact of Brexit on the automotive sector, the BEIS Committee says a no-deal puts tens of thousands of UK jobs at an increased risk and threatens billions of pounds of inward investment.
The Society of Motor Manufacturers and Traders (SMMT) estimated the development of trade barriers to spark a 4.5bn drop in exports while other studies pointed with a greater decline.
The report finds that non-tariff barriers, available as border delays and increased bureaucracy, will even impact on UK competitiveness. The report recommends the Government places a superior premium rolling around in its Brexit negotiations on securing frictionless trade for your automotive sector.
Rachel Reeves MP, Chair from the Business, Energy and Industrial Strategy (BEIS) Committee, said:”The car publication rack one of the UK’s great manufacturing successes. Innovative and efficient car plants around the world provide a huge number of jobs as well as the automotive sector may be a major reason for our economic growth. There isn’t any credible argument to suggest you will find reasons to be gained from Brexit to the UK car industry.
“Regulatory consistency and friction-free trade benefits car companies, consumers and car-workers. The best Minister now should ensure common-sense pragmatism prevails and disclose the Government’s intention to find continued regulatory and trading alignment together with the EU inside the automotive sector.”
The UK automotive sector is largely export-led with Europe for the reason that primary market. A can be the single most closely integrated sectors with all the EU. England automotive sector’s success is based within the complex supply chains that stretch throughout Europe: typically, parts are transferred through different countries prior to being assembled in the final product.
The report discusses potential opportunities due to Brexit, but finds it unrealistic can be expected an increase of trade overseas to outweigh have an effect on trade to Europe due to a difficult Brexit. The report also states that any new bilateral trade deals secured with the Government are unlikely to guide straight away to a significant surge in investment and jobs in the UK automotive sector.
The Committee found out that retaining good accessibility to single sector is more useful than securing the freedom to secure new trade addresses third countries.
The report recommends the Government seeks during the negotiations to preserve existing arrangements with the certification of vehicles through the entire EU, either as an element of a Mutual Recognition Agreement or some alternative arrangement. To improve trade opportunities when using the EU C britain’s biggest trading partner C and also to provide certainty to global manufacturers, the federal government might also want to try and retain regulatory alignment using the EU regulatory framework for that short to medium term.