Car industry urges Govt to address trade barrier concerns

19 October 2023 , 12:36

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Over half of UK car exports go to Europe and around 70% of the vehicles we buy come from there. (Image: PA Archive/PA Images)

Ministers, it seems, are beginning to pay attention to the car industry's ongoing worries about trade barriers affecting trade.

Mike Hawes, boss of the Society of Motor Manufacturers and Traders (SMMT), said at a conference that Europe is their main trading partner "by some considerable distance".

He stated: "Over half our exports go to the rest of Europe and around 70% of the vehicles we buy come from Europe." He added: "Preserving that trade tariff-free, quota-free and, ideally, friction-free remains the objective."

Business Secretary Kemi Badenoch told the same conference that recent investments by car companies like Ford, Stellantis and BMW were a "huge vote of confidence" in the UK's motor industry.

She said: "The UK's automotive sector is world leading, and it demonstrates that the Government has the right plan for industry and is leading the way not just in the production of cars but in developing the zero emission and green technologies that will help us hit net zero."

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She went on to say: "And in the coming months, I hope to have more good news for you. I'm hoping to announce an Advanced Manufacturing Plan that will ensure the UK automotive industry remains competitive." She concluded: "But we're not going to do that by entering distortive subsidy battles. Protectionism is not the answer. We still believe in free trade, it is what's going to keep us prosperous."

"We will be acting in a targeted and strategic way. We're going to build on our innovation ecosystem, we're going to focus on sectors where we have comparative advantage and ensure the UK has a competitive business environment."

"That is what the Government's strategy is, and most importantly we'll continue to listen. I am your advocate in government and I will continue to champion your interests at every opportunity."

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Steve Charnock