UK and EU auto industry urgent statement calling for free trade agreement September 14 at 8:03 a.m.
As Britain’s Johnson administration submitted a bill on the back of a withdrawal deal agreed with the EU-European Union, and the impending conclusion of a free trade agreement was in crisis, industry groups in the UK and EU cars jointly issued an urgent statement, u.S. and European Union auto industry groups called for an early conclusion, saying that without the agreement, both industries would suffer a devastating blow.
The UK and the EU, which have very strong economic connections, aim to conclude a free trade agreement by the end of the year so that smooth trade relations can be maintained after the transition period after the withdrawal ends at the end of the year.
However, with Britain’s Johnson administration submitting a bill to Congress condemning the withdrawal agreement it had agreed to with the EU and receiving strong criticism from the EU, the conclusion of the agreement is in crisis.
In response, car industry groups in the UK and EU countries issued a joint statement today, complaining that if the transition period ends without an agreement, there will be a drop in demand with a new 10 percent tariff on cars, and the industry-wide loss will exceed 110 billion euros (13 trillion yen in Japanese yen) over the next five years.
On top of that, we are calling for the early conclusion of a free trade agreement, as both industries, which are under pressure from the new Coronavirus, will be hit further without an agreement.
Japanese manufacturers are also concerned about the future, as they export cars made in the UK to EU countries.