GlobalData urges progressive Brexit talks

GlobalData has warned of dire implications if the UK and EU are unable to negotiate effective trade terms in the coming months.

Ahead of the trade negotiations between the UK and EU next month, Prime Minister Boris Johnson has vowed to walk away from the table if political and legal sovereignty conditions are not met.

GlobalData’s motor finance editor, Chris Lemmon, said: “The fresh threat of no-deal from Boris Johnson will be further cause for concern for UK businesses – as the government appears to be prioritising political and legal factors over the trade needs of UK businesses. The UK automotive industry in particular will be worried by the Prime Minister’s comments, as it currently relies heavily on minimal trade barriers and tariffs.

“Should the Prime Minister withdraw from the negotiations, the UK would exit the European Union without a trade deal and automatically fall under World Trade Organization (WTO) regulation. Under those rules, cars crossing the border between the UK and the EU would see a 10% tariff added – which could have a devastating impact on manufacturers wanting to sell their cars in or from the UK.

“On top of that, there would be additional checks and paperwork to be completed before any item is able to pass through customs – further straining supply chain resources.

“Government ministers are set to meet tomorrow (25 February) to discuss the ins and outs of the negotiation position, before the government’s final mandate for the agreement is published on Thursday. Businesses on both sides of the Channel will be hoping to see a greater commitment to frictionless trade.”