No upside in Brexit for British automotive trade – MPs

LONDON (Reuters) – Britain should preserve free commerce and European Union regulatory alignment for the automotive trade as Brexit provides no upside for the sector, a committee of MPs mentioned.

As certainly one of Britain’s few manufacturing success tales for the reason that 1980s, the automotive trade employs greater than 800,000 individuals and generates turnover of 77.5 billion kilos.

But firms are anxious that Britain’s exit from the one market may result in customs checks, commerce obstacles and tariffs which might push up prices and danger the long-term viability of their factories.

“There is no credible argument to suggest there are advantages to be gained from Brexit for the UK car industry,” the chairwoman of Britain’s business committee Rachel Reeves, an opposition Labour lawmaker, mentioned on Thursday.

“The Prime Minister now needs to ensure common sense pragmatism prevails and spell out the Government’s intention to seek continued regulatory and trading alignment with the EU in the automotive sector,” she mentioned.

Ministers have promised to align British laws with EU ones in some areas, such because the automotive sector, and preserve free and unfettered commerce with the trade’s largest export market.

Toyota mentioned on Wednesday it’s going to construct the following era of its Auris automotive at its English plant, however warned that continued free and frictionless commerce was “vital for future success.”

However, executives had informed the committee that some companies comparable to Honda are contemplating constructing further warehouses and stockpiling elements to guard their operations from any delays on account of Brexit, which might add price.

MPs additionally concluded that Britain ought to preserve present certification preparations, by which vehicles authorized in Britain can be utilized on the continent and vice versa.

On Monday, the chief govt of Aston Martin informed Reuters the posh carmaker was utilizing a regulator within the European Union reasonably than Britain’s personal physique to approve its new automotive because of uncertainty over future laws.

“We recommend that the government… prioritise the continuation of existing arrangements for the Vehicle Certification Agency to authorise type approvals for the European single market, whether as part of a Mutual Recognition Agreement or some alternative arrangement,” the committee mentioned.

Reporting by Costas Pitas; modifying by Alexander Smith

Our Standards:The Thomson Reuters Trust Principles.

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