Britain’s Society of Motor Manufacturers and Traders (SMMT) on Tuesday called on Brexit negotiators to clinch a deal by the end of 2020 since a no-deal outcome could cost the sector $74 billion in tariffs by 2025, according to Reuters. A no-deal Brexit will cut U.K. vehicle production by two million units in the next five years and hamper the development of the next generation zero-emission vehicles-SMMT.
- “With scant time left for businesses to prepare for new trading terms, the sooner a deal is done and detail communicated, the less harmful it will be for the sector and its workers” -SMMT.
- Britain and E.U. are working on a new deal by January 1, 2021
- Failure to strike a Brexit deal will leave car makers paying World Trade Organization (WTO) tariffs of up to 55.4 billion pounds on parts and vehicles imported and exported into and out of Britain.
- WTO tariffs would add an average 2,000 pounds to the cost of British-built electric cars sold in the E.U., making U.K. plants less competitive and undermining Britain’s attractiveness as a destination for inward investment.”
- The SMMT’s appeal comes less than a week after the U.K. said it would ban the sale of new petrol and diesel cars and vans from 2030 as part of a “green revolution” to cut emissions to net-zero by 2050.
U.K. stocks are currently gaining. FTSE 100 is up 1.55%
