Britain is considering supporting the auto industry when leaving the EU without an agreement

The British business minister, Nadim Zahawi, said that his country is looking for tools that can be used to support the car industry in the country, if the exit from the European Union without an agreement.

The government is in talks with car companies such as PSA Group, Toyota, Ford, Nissan, Jaguar and Land, according to Bloomberg. Rover », to identify the problems that will occur if Britain emerges from the European bloc without an agreement.

Tools available

"There are a number of tools available to us in the government to help these companies," he said, explaining that he is helping car manufacturers within the framework of WTO government aid rules or EU rules in case of exit from the bloc under an agreement.

The car companies have expressed their opposition to leaving the European Union without an agreement, which looms British Prime Minister, Boris Johnson, to resort to if there is no agreement with the European bloc by October 31.

Automakers said the move would be "devastating" for the industry, disrupting supply lines and increasing tariffs, leading to higher costs and undermining the competitiveness of British cars being exported.

Job loss

For its part, announced the Central Bank of Ireland, that Brexit without the European Union (Brexit) without an agreement will cost Ireland more than 73 thousand jobs over two years.

The Bank said in its quarterly report, issued in the capital Dublin, yesterday that if Britain emerges from the European bloc without an agreement, the unemployment rate in Ireland will rise by 5.8% in 2020 and 6.9% in 2021.

The report, cited by Bloomberg, said the Brexit would cut unemployment to 5% in the next two years.

The bank said that "in the event of exit without an agreement, the main economic channels will be affected by shocks to interest rates, trade, consumption and investment, which will lead to a clear deterioration in economic conditions."

Car exports

For its part, warned the Japanese automaker «Nissan Motor» of the repercussions of Brexit without an agreement, saying that the imposition of any duties on exports of cars from Britain to the European Union, after the implementation of the exit decision, will make the continuation of the company's activities in Britain Economically feasible.

Gianluca di Vichy, chairman of Nissan Europe, said the impact of a 10 percent tariff on British car exports to the EU cannot be offset by WTO rules by cutting costs. While it is impossible to determine the extent of the turmoil caused by Brexit without an agreement, the impact of such fees is certain and will put the future of Britain's largest car manufacturer in The wind.

He pointed out that the only clear conclusion we have reached is that if an exit is achieved without an agreement, and a 10% duty is imposed in accordance with WTO rules, the continuation of the plant will not be possible, this will represent a significant increase in the cost that will make our production less competitive.

"Britain and the EU are not on track to reach an agreement on Brexit at the moment," said EU chief negotiator Michel Barnier, adding that the agreement was still "possible" if both sides showed goodwill.

Barnier identified three major problems in London's proposals on the Irish border problem.

Barnier will meet his British counterpart, Stephen Barclay, as the EU summit approaches, during which both sides had hoped to conclude an agreement.

British Prime Minister Boris Johnson has vowed to push his country out of the European Union by the end of this month, despite a law requiring him to seek an extension of the exit date if he fails to reach an agreement.

Barnier explained that the main problems in the proposals put forward by London related to Britain's proposed approach to control of the Irish border, the need for a practical solution legally binding, and the plan to hand over the approval authority to the Parliament of Northern Ireland, which may reject the agreement, Barnier said.

"The British government's proposal, as it is today, which we cannot accept, seeks to replace a viable, practical and legal solution with a temporary hypothetical solution," Barnier said.

"At the moment I am talking to you, we are not at the stage of conceiving and finding an agreement," Barnier told European lawmakers. "Even if it is very difficult, if there are good intentions on both sides, an agreement with the British will still be possible."

- Nissan: Imposing any duties on car exports makes the company's continuation in Britain economically ineffective.