CBI chief warns of UK car production dangers if no customs agreement is made with EU

Jimi Beckwith
13 June 2018
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The head of the Confederation of British Industry (CBI) has warned that the UK’s car industry would suffer if a customs union agreement is not made with the European Union (EU) when Brexit happens. 

"If we do not have a customs union, there are sectors of manufacturing society in the UK which risk becoming extinct," Paul Dreschler said, talking to the BBC. 

Dreschler added that there is “zero evidence” that non-EU trade deals would help in any way, “It’s a myth,” he said. 

Brexit has long been described as a threat to the UK’s car industry, with the Society of Motor Manufacturers & Traders (SMMT) claiming last year that damage has already been done, with domestic demand for UK-built cars falling across multiple months since the vote to leave the EU in June 2016.

Production figures recovered in April 2018, although 2018 so far remains down on the same period of 2017 by 3.9%. 

“Real frictionless trade” is needed to prevent further damage to the UK’s car industry, said Dreschler, adding that the delays and increased costs from trade tariffs would be particularly damaging. 

Nguồn: www.autocar.co.uk