Automotive Industry Welcomes New EU-UK Trade Agreement

The chief executive of the trade association for the automotive industry has welcomed the news of the new EU-UK trade agreement, saying that it will provide a base for the future relationship between the two.

Mike Hawes of the Society of Motor Manufacturers and Traders (SMMT) explained, however, that a phase-in period will be essential to ensure that businesses everywhere are able to adapt and it is critical to make sure that implementation is seamless, “with tariff-free trade fully accessible and effective for all from day one”.

He went on to say: “We await the details to ensure this deal works for all automotive goods and technologies, including specifics on rules of origin and future regulatory cooperation … We will continue to work closely with government to ensure all companies are as prepared as possible in the limited time left.”

SMMT figures, published on December 23rd, show that UK commercial vehicle manufacturing dropped by 1.9 per cent in November. Although output for the domestic market rose 10.1 per cent, with growing demand for online deliveries, this didn’t offset an 8.8 per cent decline in exports, with covid-19 restrictions closing off parts of key economies.

Some 94.1 per cent of all commercial vehicle exports were destined for EU markets in 2020, so it is no doubt welcome news for all that a Brexit deal has now been agreed upon.

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