Saturday, September 23, 2023
Brexit coming home to roost
As the Prime Minister moves the goalposts on key environmental targets, the UK car industry has more concerns and yes, the problem is Brexit as advocated and supported by ministers in the current government.
The Guardian reports that the responsible European Commissioner has ruled that the Brexit trade deal should not be reopened just to satisfy demands from some sectors of the UK and EU motor industry concerned about looming tariffs on electric cars.
The paper says that EU leaders have come under pressure to suspend 10% tariffs on electric car exports that are expected to begin in January under the Brexit trade agreement sealed by Lord Frost in 2020. However, Thierry Breton, who is responsible for the EU internal market said the commission and EU leaders are bound under competition laws to look at the entire automotive “ecosystem” and not favour one “category” in the industry over the other:
“If something has been negotiated, it shouldn’t be changed,” Breton said.
Earlier this year Stellantis, the parent company for 14 brands including Vauxhall and Jeep, issued a stark warning that it may have to close operations in Britain with the loss of thousands of jobs if the tariffs were not temporarily lifted.
Their call has been backed by the European Automobile Manufacturers’ Association (ACEA), which has said exports of electric cars to the UK worth tens of billions of euros a year will be put at risk unless the Brexit trade deal is altered.
Recent support from Germany has fuelled anticipation of a favourable decision by the commission.
But Breton warned that the car industry was not made up of big brands like BMW, Volkswagen or Vauxhall alone and he had to ensure a level playing field for all.
“Remember the automotive industry is not made only of the manufacturers but is made also of the hundreds of thousands of companies providing everything which is needed for a car, including the battery providers.
“It is a global supply chain. I call it the ecosystem, and I have to look at, as commissioner of industry, not at one single part of this ecosystem but all of the ecosystem,” he said. Each sector had to be treated fairly, he added, as they had the same rights under competition law.
“What has been negotiated has been negotiated and I think it’s very important to stick to a treaty when it has been so difficult to do it. Andwhen we speak about the automotive system, everyone who is part of this ecosystem I have to take care of, not one single category.”
Those of us who opposed Brexit can take no satisfaction from the impact of these tariffs on British jobs and the economy, even though we warned that this would happen. As far as the Brexiteers go, they are getting what they voted for.
The Guardian reports that the responsible European Commissioner has ruled that the Brexit trade deal should not be reopened just to satisfy demands from some sectors of the UK and EU motor industry concerned about looming tariffs on electric cars.
The paper says that EU leaders have come under pressure to suspend 10% tariffs on electric car exports that are expected to begin in January under the Brexit trade agreement sealed by Lord Frost in 2020. However, Thierry Breton, who is responsible for the EU internal market said the commission and EU leaders are bound under competition laws to look at the entire automotive “ecosystem” and not favour one “category” in the industry over the other:
“If something has been negotiated, it shouldn’t be changed,” Breton said.
Earlier this year Stellantis, the parent company for 14 brands including Vauxhall and Jeep, issued a stark warning that it may have to close operations in Britain with the loss of thousands of jobs if the tariffs were not temporarily lifted.
Their call has been backed by the European Automobile Manufacturers’ Association (ACEA), which has said exports of electric cars to the UK worth tens of billions of euros a year will be put at risk unless the Brexit trade deal is altered.
Recent support from Germany has fuelled anticipation of a favourable decision by the commission.
But Breton warned that the car industry was not made up of big brands like BMW, Volkswagen or Vauxhall alone and he had to ensure a level playing field for all.
“Remember the automotive industry is not made only of the manufacturers but is made also of the hundreds of thousands of companies providing everything which is needed for a car, including the battery providers.
“It is a global supply chain. I call it the ecosystem, and I have to look at, as commissioner of industry, not at one single part of this ecosystem but all of the ecosystem,” he said. Each sector had to be treated fairly, he added, as they had the same rights under competition law.
“What has been negotiated has been negotiated and I think it’s very important to stick to a treaty when it has been so difficult to do it. Andwhen we speak about the automotive system, everyone who is part of this ecosystem I have to take care of, not one single category.”
Those of us who opposed Brexit can take no satisfaction from the impact of these tariffs on British jobs and the economy, even though we warned that this would happen. As far as the Brexiteers go, they are getting what they voted for.
