UK and EU auto industry urgent statement calling for free trade agreement September 14, 8:03
Britain and EU countries have submitted a bill to dismiss the withdrawal agreement agreed with the EU = European Union by the Johnson administration of the United Kingdom, and the conclusion of a free trade agreement that is about to expire is in a critical situation. The auto industry group has jointly issued an urgent statement calling for an early conclusion, saying both industries would be devastated without an agreement.
The UK and the EU, which have extremely strong economic ties, aim to conclude a free trade agreement by the end of the year so that smooth trade relations can be maintained even after the transition period after withdrawal ends at the end of the year.
However, the conclusion of the agreement is in jeopardy as the British Johnson administration has submitted a bill to Parliament that defies the withdrawal arrangement that had been agreed with the EU and has been strongly criticized by the EU.
In response, the UK and EU automobile industry groups jointly issued an urgent statement on the 14th, and if the transition period ends without an agreement, automobiles will be subject to a new 10% tariff. The loss of the industry as a whole will exceed 110 billion euros (13 trillion yen in Japanese yen) over the next five years.
On top of that, he calls for the early conclusion of a free trade agreement, saying that without the agreement, both industries, whose performance has been declining due to the effects of the new coronavirus, will be further hit.
For Japanese manufacturers, it is indispensable to conclude an agreement because they export cars made in the United Kingdom to EU countries, and there is growing concern about the future.