The breakdown of trade talks with Canada threatens massive costs for UK car makers exporting there, said the Society of Motor Manufacturers and Traders today.
The stalemate on a free trade deal creates the risk of tariffs being imposed on British-made cars sold in Canada.
Britain’s current deal after Brexit until April means we export vehicles containing EU-manufactured parts to Canada without facing tariffs, but now that could dramatically change.
“If UK car exports can’t use EU parts and components to avoid additional duties it creates a risk that tariffs, potentially charged on top of luxury goods taxes, could be reintroduced,” Mike Hawes, the chief executive of the Society of Motor Manufacturers and Traders, said in a statement.
“Canada is an important market for UK car exports and, given the close ties between our two countries, the suspension of trade talks is especially disappointing and sends a signal that the UK’s world-class automotive products are not welcome in Canada.”
Britain halted talks amid unhappiness about the lack of access to agricultural markets.
