Stop being stubborn! EU urged to back down on Brexit talks by terrified car industry

3 min


88
13 shares, 88 points

By

The European Automobile Manufacturers’ Association (ACEA), which represents companies including BMW, Toyota and Fiat, sounded its dire warning in a letter sent to Brussels chiefs earlier this week. In it, they stressed some aspects of the bloc’s current position were “not in the long-term interests of the EU automotive industry“.

{%=o.title%}

]]>

Specifically, ACEA urged the EU to “reconsider its position” on rules which will determine whether or not goods will qualify for tariff-free trade.

The letter, sent on October 15, also called on the EU to reduce the percentage of components in a car which need to be made in Europe or Britain in order for the vehicle to benefit from any EU-UK trade deal.

ACEA is also urging the new rules to be phased-in to enable the industry to adapt to the changed business environment.

Stop being stubborn! EU urged to back down on Brexit talks by terrified car industry

Michel Barnier has been urged to back down by car manufacturers (Image: GETTY)

Stop being stubborn! EU urged to back down on Brexit talks by terrified car industry

German car manufacturers are deeply concerned (Image: GETTY)

Both sides are hoping to strike an agreement which offers tariff-free, quota-free trade on all goods – but talks appear to be stalled.

EU chief negotiator Michel Barnier has told businesses they must accept “short-term adaptation costs” in the name of protecting the bloc’s “long-term economic interests”.

His uncompromising approach has rattled companies concerned about the potential economic consequences for Europe of weaker trade links.

JUST IN: Brexit LIVE – EU must drop THREE demands before Boris Johnson returns

Stop being stubborn! EU urged to back down on Brexit talks by terrified car industry

Michel Barnier talks to European Commission vice-president Maros Sefcovic in Brussels today (Image: EU)

In June, more than 50 food and drink trade associations in the EU and UK wrote to Brussels urging more flexibility, suggesting a tariff-free trade agreement would be “meaningless” without a corresponding move to ensure companies were able to take advantage.

The European Commission confirmed it had received the letter, which has been seen by the Financial Times.

Various industries are particularly concerned by the so-called rules of origin in a future EU-UK trade deal.

DON’T MISS
EU warned of collapse – ‘Northern states could form new group’ [INSIGHT]
EU warned economic split could ‘blow the whole thing up’ [ANALYSIS]
EU split as Macron and Varadkar slam trade deal – ‘They lied to us!’ [INSIGHT]

Stop being stubborn! EU urged to back down on Brexit talks by terrified car industry

Nicolas Peter, BMW’s finance director (Image: GETTY)

Stop being stubborn! EU urged to back down on Brexit talks by terrified car industry

UK President Boris Johnson (Image: GETTY)

Such rules seek to establish the extent to which a company is able to source components from different parts of the world while still counting the finished product as European.

Britain is pushing for a deal which will permit companies to count all EU and UK content as local, along with content from other countries with which Britain and Brussels both had trade deals — for example Japan.

However, Brussels has so far resisted including goods from other trade partners.

Stop being stubborn! EU urged to back down on Brexit talks by terrified car industry

Trade deal timetable (Image: Express)

The EU wants non-UK/non-EU content be limited to 45 per cent of the car.

ACEA wants the figure pushed up to 50 per cent “in line with the UK’s position”.

The letter adds: “Long-term supplier contracts bind manufacturers to specific suppliers for many years and this should be taken into account in the FTA.”

Stop being stubborn! EU urged to back down on Brexit talks by terrified car industry

BMW is one of the letter’s signatories (Image: GETTY)

Nicolas Peter, BMW’s finance director, outlined his concerns during an online press conference last week.

He said: “The European Automobile Manufacturers Association (ACEA) has estimated that it could cost car manufacturers and suppliers from 10 to 11 billion euros, so we need tariff-free trade.

“And even then, it must be seamless.

“We have a just-in-time production system, so customs administrative processing must be efficient.”


Like it? Share with your friends!

88
13 shares, 88 points

What's Your Reaction?

hate hate
12
hate
confused confused
4
confused
fail fail
18
fail
fun fun
16
fun
geeky geeky
14
geeky
love love
8
love
lol lol
10
lol
omg omg
4
omg
win win
18
win

Read exclusive latest news on entertainment, music, gaming and more topics with unprecedented coverage from around the UK and US.

0 Comments

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.