Category Archives: Brexit

LABOUR leader Sir Keir Starmer has boasted he will reopen Brexit talks if he becomes the next Prime Minister.

He confirmed he would go back to Brussels cap in hand for a closer relationship with the EU.

Announcing he would plead for yet more negotiations, Sir Keir said: We need a better Brexit deal. We want a close trading relationship.

But while he said theres more we can do with the EU he insisted he did not want to rejoin the club or the Single Market.

But the Tories accused the opposition boss and former Remain stalwart of surrender.

They hit back: Sir Keir Starmer wants to rig British elections so EU nationals can vote for the British government.

It is obvious why. He wants to re-open Brexit, hand power back to Brussels and surrender to uncontrolled, unlimited immigration. After all, this is what hes campaigned for his entire political career.

The row comes just weeks after No10 ended two years of negotiations with Brussels that concluded with the Windsor Framework, which will ease Northern Ireland trade barriers.

But Sir Keir said: I don't think many people look at that deal and think its working very well.

Last night, Prime Minister Rishi Sunak slammed critics of Brexit, saying he still believed in the project.

Speaking to reporters on his private jet on the way to Japan for the G7 summit, he said: I voted for Brexit, I believe in Brexit.

I am actually delivering the benefits of Brexit as opposed to talking about it.

In a dig at Nigel Farage, who said Brexit has not worked, Mr Sunak insisted: I feel pretty confident we are delivering the benefits of Brexit from an economic perspective the track record is very clear on that.

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Keir Starmer boasts hell reopen Brexit talks if he becomes Britains next Prime Minister... - The Sun

Brexit

Business and trade secretary to meet Swiss counterpart on Monday to boost trade between two services superpowers

Kemi Badenoch will fly to Switzerland on Monday for talks with her Swiss counterpart on a new post-Brexit trade deal, describing the two countries as natural trading partners.

The business and trade secretary is meeting Guy Parmelin in Berne to discuss a modern UK-Switzerland free trade agreement (FTA) that would boost trade between two services superpowers, she said.

Theres a huge prize on offer to both the UK and Switzerland by updating our trading relationship to reflect the strength of our companies working in areas ranging from finance and legal, to accountancy and architecture, said Badenoch ahead of the talks at the Federal Palace of Switzerland.

The UK and Switzerland are natural trading partners and todays launch will play to our strengths as services superpowers, while also boosting investment in emerging technologies, data innovation and digital trade.

The government is keen to forge new trading relationships in the wake of Brexit and most recently joined the 11-member Asia-Pacific trade bloc the Comprehensive and Progressive Agreement for Trans-Pacific Partnership that includes Japan and Australia.

Switzerland, one of the wealthiest countries in the world, is already the UKs 10th largest trade partner, accounting for 3.1% of its trade in 2022. The total trade in goods and services (exports plus imports) between the UK and Switzerland was nearly 53bn last year, up 13bn on 2021, according to the department for business and trade.

William Bain, head of trade policy at the British Chambers of Commerce, described the Swiss talks as one of the most important sets of negotiations for business the UK government has launched in the post-Brexit era.

The 2021 continuity agreement post-Brexit only rolled over terms on trade in goods but not services, so there has been a major gap to fill in affecting just under half of our trade with Switzerland, he said. We also need to make permanent the temporary services labour mobility and business travel rules agreed last year.

The UK runs a trade surplus with Switzerland with a breakdown showing exports totalling 33.3bn and imports of 19.5bn. Of all UK exports to Switzerland in 2022, 18.5bn (55%) were goods, including gold, art works and medicine, while 14.9bn were services, of which two-thirds were business and financial.

The current FTA is based on an EU-Swiss deal brokered more than 50 years ago and does not cover services, investment, digital or data. With nearly 70% of the UKs services exports to Switzerland delivered electronically both sides are said to be keen on a modernised agreement.

Chris Hayward, policy chair of the City of London Corporation, said the UK and Switzerland are the two largest financial centres in Europe and strengthening our services trade relationship is a top priority. The agreement needed to address key issues including mobility, data flows and digital trade to the benefit of both jurisdictions, he said.

The talks will formally get under way next week with lower tariffs (red meat and chocolate are among the British goods that attract high import taxes) also on the governments list along with simpler customs procedures and improving regulatory cooperation.

Naomi Smith, chief executive of the Best for Britain campaign group, said closer ties to Switzerland would not replace trade lost following Brexit: The government should prioritise removing new barriers to trade with our largest trading partners in Europe which continues to cost jobs and stunt growth.

Nick Thomas-Symonds, shadow secretary of state for international trade, added that when it came to trade the government was big on promises and appallingly low on delivery.

Of course, its important to deepen trade links with allies like Switzerland, he said. However, the government have promised signed deals with the USA and India by the end of 2022, neither have been delivered and look increasingly far off. Little wonder the OBR forecasts UK exports will fall by 6.6% in 2023, a hit of over 51bn to the economy.

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Kemi Badenoch flying to Switzerland to discuss post-Brexit trade deal - The Guardian

The current Brexit deal is unrealistic and counterproductive for electric car manufacturing and needs to be changed, Jaguar Land Rover (JLR) has warned.

JLR, which employs around 30,000 people, has joined Vauxhall maker Stellantis in criticising the current requirements of the Brexit Trade and Co-operation Agreement (TCA) negotiated by Boris Johnson and the EU.

Both firms are calling for a new timeline to delay the introduction of the so-called rules of origin covering where parts must be sourced from, which they say will make their vehicles uncompetitive.

It is understood JLR supports the overarching intent of the legislation, but a spokesperson told i: The proposed timelines for the battery rules of origin under the TCA are unrealistic and counterproductive.

We echo the call for the UK and EU to quickly agree a better implementation to avoid destabilising the industrys transition to clean mobility.

The remarks add to pressure on Rishi Sunak and the Government to negotiate a delay with the EU to the rules of origin beyond January 2024. Under the current proposed timeline, from next year, 45 per cent of the value of an electric car should originate in the UK or EU to qualify for trade without tariffs.

i understands that the EU is not willing to reopen the TCA, which clearly states the rules will kick in from January, with a European Commission document in March making clear it was willing to make only technical adaptations.

It comes after Stellantis, which owns Vauxhall, Peugeot, Citroen and Fiat, said it can no longer meet rules on where parts are sourced and warned there could be significant job losses.

Car manufacturing remains one of the countrys highest value industries, employing 182,000 people in the UK and contributing 67bn a year in turnover to the economy.

But with the average vehicle requiring around 500 components sourced from all over the world, it was always one of the industries most vulnerable to the UKs decision to leave the EU.

The Governments decision to move from petrol and diesel engines to electric vehicles to meet its net zero target, which comes into play from 2030, has further accelerated the need for clarity on trade rules.

Stellanis and other car manufacturers are struggling to source the electric batteries they need to build their vehicles in the UK due to a lack of domestic production.

While there are around 300 gigafactories being built to supply them around the world, including 40 in mainland Europe, there are currently none in the UK.

The governments attempts to kickstart the industry with a plant in Blyth, Northumberland, were dealt a blow with the collapse of Britishvolt earlier this year.

In the meantime, car manufacturers are having to import parts from elsewhere and face being subject to tariffs.

An industry source told i all the other names in the UK market will be affected to one degree or another by the current situation.

Everybody is in the same position, the source said. The battery in an electric vehicle is a large, expensive component so it makes up a big percentage of the total cost of the vehicle.

Nissan have their joint venture, they have a small gigafactory next to the plant in Sunderland, so theyve got their supply sorted out.

Toyota dont currently make their electric vehicles in Derbyshire but they could do, Jaguar Land Rover in the Midlands are shortly going to be making electric vehicles, theyve said they will source batteries elsewhere.

Theres smaller players like Bentley and Rolls Royce, Aston Martin, but the lower the cost of the car the more an issue it is.

If its a Rolls Royce or a Bentley that costs 300,000 you can absorb it.

But Stellantis operates in the volume end of the market, they are very price sensitive which is why its particularly big for them.

Toyota declined to comment. Bentley, Rolls Royce and Aston Martin were also contacted for comment.

The car manufacturing industry has been warning of issues around Brexit for years but the situation has become more acute.

It is a worrying time, the industry source added.

Weve always known this was coming as a result of the Brexit deal but its been a bit of a slow burn. Its something that needs to be looked in the eye now. This is a massive issue, particularly for the car industry.

The UK needs a battery industry, it needs big infrastructure projects such as five or six gigafactories so that we can supply the domestic car industry.

Car manufacturers have been warning the Government of these issues for some time.

In a submission to the Business and Trade Committee in June 2022, Nissan said: To ensure gigafactory production capacity in the UK, model allocation to manufacture EVs (electric vehicles) in UK plants like Nissans in Sunderland is essential.

There is a vital need to fulfil rules of origin requirements for UK battery content required to export EVs, not just to Europe but also to the rest of the world, and to create the supply-side demand that is necessary to justify the establishment of an EV battery supply chain and battery manufacturing presence in the UK.

Industry body, the Society of Motor Manufacturers and Traders (SMMT), echoed those warnings in February this year, writing: Despite a sharp rise in announced investment in regional battery supply chains, the current manufacturing capability in the EU and the UK does not allow our sector to meet upcoming origin requirements for batteries and battery parts.

With the rapid acceleration of demand for EVs, analysis by industry stakeholders such as the European Battery Alliance and the APC show that regional supply capabilities will not be able to satisfy the EU and UK demand for battery-related technologies by 2025, with significant gaps in cathode and anode production.

Given the lack of production capabilities of critical parts, including cathode active materials, the provision for a change of tariff heading cannot be met by 2024, while the steep increase in prices of raw materials result in very significant challenges to meet overly ambitious value-added rules for the foreseeable future.

A Government spokesman said: The Business and Trade Secretary has raised this with the EU and is determined to ensure the UK remains one of the best locations in the world for automotive manufacturing, especially as we transition to electric vehicles.

We are supporting the industry through the Automotive Transformation Fund and Advanced Propulsion Centre to develop a high-value end-to-end electrified automotive supply chain in the UK and support cutting-edge automotive technologies.

In the coming months, the Government will build on these interventions with decisive action to ensure future investment in zero emission vehicle manufacturing.

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Jaguar Land Rover joins Vauxhall maker in criticising Brexit deal, piling pressure on Sunak - inews

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David Furnish, Elton Johns husband, has attacked the deluge of Brexit red tape and extra costs choking UK musicians trying to tour the EU, as the scale of the slump in British performers in Europe is revealed.

New analysis shared with The Independent shows that the number of British performers playing festivals across Europe this year is one-third less than before Brexit.

And the number of European acts playing at this years Glastonbury has plummeted by half compared to the years before Brexit, according to figures from the Best for Britain campaign group.

Mr Furnish, chief executive of Sir Eltons Rocket Entertainment Group, said:The new generation of artists coming through unfortunately are now finding themselves, for touring Europe, with a lot of red tape, a lot of complications and a lot of additional costs in order to launch and build a global music career.

Calling for ministers to ease the bureaucratic burden, he said live music was such an important part of the British cultural landscape, with UK acts leading the world for decades.

Sir Elton has previously declared that he is sick to death ofBrexit, with the superstar attacking the Tory government for a philistine failure to acknowledgethe crucifying impact of red tape on touring performers.

The number of British performers scheduled to take to stages across the major festivals in Europe this summer has fallen by 32 per cent compared to 2017-19, the new figures show.

The findings mark a slight improvement on last year when British musicians playing post-Covid European festivals had fallen by 45 per cent compared to the immediate years before Brexit.

But the sobering statistics have reinforced fears around the lasting impact Britains third country status is having on young British bands and singers.

Thom Yorke has condemned spineless decision to reject visa-free touring deal

(PA)

The Independent revealed in 2021 that the Tory government rejected an EU offer of visa-free tours bymusiciansto all countries in the bloc, despite blamingBrusselsfor the permits required.

A standard proposal to exempt performers from costs and bureaucracy for 90 days was turned down, sparking criticism from Radiohead frontman Thom Yorke,Charlatans starTim Burgess, Laura Marling and others.

The government said the majority of EU members including Spain, France and Germany had made clear that visa-free routes were available to touring UK artists.

But both British and EU bands have struggled with Brexit changes. German punk band Trigger Cut revealed they were recently denied entry into the UK, having been asked for extra certificates of sponsorship from all the venues they were booked to play.

Naomi Smith, chief executive of the internationalist campaign group Best for Britain, said emerging talent was shamefully starved of the opportunities enjoyed by previous generations.

Music industry bosses have been invited to share their experience and views at Trade Unlocked 2023, a conference at the NEC in Birmingham next month that seeks to shape trade policies ahead of the next election.

Noel Gallagher has branded Brexit a f****** unmitigated disaster

(Getty Images)

Deborah Annetts, head of the Incorporated Society of Musicians, said the piles of post-Brexit paperwork continues to cost opportunities for emerging artists.

Ms Annetts, a member of the UK Trade and Business Commission,said the conference offered musicians the chance to make their voice heard and work with other industries to effect meaningful change.

It comes as Noel Gallagher branded Brexit an absolute unmitigated disaster and blaming the UKs exit for food shortages. Theres no f****** eggs in the supermarket.

The Oasis and High Flying Birds songwriter told The Big Issue: I feel sorry for young people growing up in this country now Brexit has been a f****** absolute unmitigated disaster.

The rock star said: And it will be a living nightmare until some politician has the balls to put a referendum in a manifesto and run on it and go back into the EU.

A spokesperson for the Department for Digital, Culture, Media and Sport said: Musicians and artists in the creative industries are an absolutely vital part of our economy and we are committed to helping them succeed.We are supporting them to adapt to the new arrangements with the European Union and make touring and performing easier.

They added: We have made the case to every EU member state that musicians should be allowed to tour and perform.The majority of them, including the biggest touring markets such as Spain, France, Germany and the Netherlands, have confirmed they offer visa and work permit free routes for UK performers and other creative professionals.

We are continuing dialogue with the few remaining countries which do not offer visa or work permit-free routes.

The UKs domestic rules allow musicians and entertainers from non-visa national countries, such as EU member states, to perform in the UK without requiring a visa.

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David Furnish slams Brexit red tape amid slump in UK acts at EU festivals - The Independent

Share this article via facebookShare Share this article via whatsapp Share this article via messenger More than 5,000 jobs are at risk if Stellantis is forced to close its UK factories (Picture: Reuters)

One of the world's largest carmakers has called on the Government to renegotiate the Brexit deal or they may not keep their commitment to make electric vehicles in the UK.

Stellantis, which makes Vauxhall, Citroen, Peugeot and Fiat, warned their UK investments were in the balance due to the terms of the trade agreement.

The firm employs more than 5,000 people in the UK and had pledged to making EV cars at its Ellesmere Port and Luton plants two years ago.

But in a submission to a Commons inquiry, Stellantis said the Brexit deal was a threat to our export business and the sustainability of our UK manufacturing operations.

It prompted Sir Keir Starmer to say we need a better Brexit deal so Vauxhall and other big employers can continue operating in the UK.

Stellantis want existing rules maintained until 2027, rather than next year's planned changes, which state 45% of an electric car's value should originate in the UK or EU to qualify for trade without tariffs.

The rising cost of raw materials during the pandemic and energy crisis meant Stellantis was unable to meet these rules of origin.

It said the upcoming rules would see 10% tariffs on trade with the EU and make domestic production and exports uncompetitive with Japan and South Korea.

The company said that would mean manufacturers will not continue to invest and will relocate.

To reinforce the sustainability of our manufacturing plants in the UK, the UK must consider its trading arrangements with Europe, Stellantis told the inquiry, listing Honda's closing of its Swindon site and investment in the US as examples of its impact.

Stellantis also warned there will be insufficient battery production in the UK or Europe to meet government targets in phasing out petrol and diesel vehicles by 2025 and 2030.

If we are unable to rely on sufficient UK or European batteries, we will be at a major competitive disadvantage. In particular against Asian imports, they said.

We need to reinforce the competitiveness of the UK by establishing battery production in the UK.

Electric cars and batteries were among the final parts of the Brexit deal agreed between then Prime Minister Boris Johnson and President of the European Commission Ursula von der Leyen in 2020.

Professor David Bailey said this poses an existential threat to the UK car industry.

The Birmingham Business School academic told the Today programme that increased tariffs and stricter rules in post-Brexit trading agreements will put British manufacturers at a competitive disadvantage.

From 2024 cars must include 59% locally produced materials and components, such as batteries, to avoid a 10% export tariff on cars exported to the EU from the UK.

Prof Bailey said: I think there is a kind of existential threat to the UK car industry.

The rules in the Brexit agreement don't help the UK car industry either. If they can't meet those rules, they'll face a 10% tariff on cars made in the UK and exported to the EU and vice versa. That will put the UK at a competitive disadvantage.

He added: Car makers have been saying for some time, they can't meet those rules as they tighten up, and they're going to potentially be facing tariffs.

Labour leader Sir Keir said the Brexit deal needed to be improved, telling the BBC: We need a better Brexit deal. We will make Brexit work.

That doesn't mean reversing the decision and going back into the EU but the deal we've got, it was said to be oven-ready, it wasn't even half-baked.

Get in touch with our news team by emailing us at webnews@metro.co.uk.

For more stories like this, check our news page.

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Vauxhall-maker demands change to Brexit deal in threat to UK factories - Metro.co.uk

Brexit Party leader Nigel Farage holds a press conference at the Foreign Press Association in London. (SOPA)

Former UKIP leader Nigel Farage, who once vowed to leave the country if Brexit turned out to be a disaster, has stated: "Brexit has failed."

Speaking to Victoria Derbyshire on BBC's Newsnight the right-wing commentator said Brexit had led to increased regulation of businesses and concluded the move had been a failure.

I mean what Brexit has proved, Im afraid, is that our politicians are about as useless as the commissioners in Brussels were," he said after Derbyshire read him a poll showing one in five leave voters regretted their decision.

Asked whether the UK would have been better staying in the EU economically - given "the OBR forecasts a 4% hit to the economy over the medium term" - Farage responded: "I don't think that for a moment."

But what I do think is we haven't actually benefitted from Brexit economically when we could have done," he added. "What Brexit has proved, I'm afraid, is that our politicians are as useless as the commissioners in Brussels were.

"We have mismanaged this totally and if you look at simple things, simple things such as takeovers, such as corporation tax, we are driving business away from our country.

Arguably, now were back in control, were regulating our own businesses even more than they were as EU members. Brexit has failed."

"Frankly, we've not delivered on borders, we've not delivered on Brexit - the Tories have let us down very, very badly," he added.

His comment prompted eagle-eyed social media users to point out Farage's former pledge to leave the country if Brexit went wrong.

Speaking on his LBC show in 2017, Farage told a caller: "If Brexit is a disaster, Ill go and live abroad.

He said at the time: "It isnt going to be a disaster. Weve just managed to get ourselves in a lifeboat off the Titanic. The EU does not work."

While the admission from a long-time Brexiteer that the UK's departure from the EU has failed may raise eyebrows among some, the sentiment is shared by much of the general public - a recent poll showed 52% of people think Brexit was a mistake.

And recent analysis from the Office for Budget Responsibility predicts that the post-Brexit trade agreement with the EU will reduce long-run productivity by 4% compared with if the UK had remained in the EU, while it estimates imports and exports will be 15% lower in the long term than if the UK had remained in the EU.

However, pro-Brexit figures argue that not enough time has passed to tell whether trade will bounce back or become stronger than it was pre-Brexit.

In 2022, the UK government touted its Brexit wins so far - including putting a crown stamp on pint glasses, having blue passports, taking back control of fishing waters, and making it tougher for EU criminals to enter the UK, among others.

Originally published 16 May 2023 at 7:12 am

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Nigel Farage, who pledged to leave UK if Brexit failed, says Brexit has failed - AOL UK

SIR Keir Starmer today boasted he'll reopen Brexit negotiations AGAIN if made PM, just months after Rishi Sunak signed a new deal with Brussels.

The Labour leader sparked fury as he insisted "we need a better Brexit deal" because the Windsor Framework isn't working.

Sir Keir told BBC Breakfast: "We will make Brexit work.

"The deal we've got, it was said to be oven-ready, it wasn't even half-baked."

The opposition chief said he doesn't want the UK to rejoin the EU single market or customs union.

But Tory MPs accused him of secretly wanting to drag Brits back under Brussels control.

This week the Labour leader sparked fury after admitting he wants to give EU citizens living in the UK the chance to vote in general elections.

A Conservative Party spokesperson said: Sir Keir Starmer wants to rig British elections so EU nationals can vote for the British government.

"It is obvious why. He wants to re-open Brexit, hand power back to Brussels and surrender to uncontrolled, unlimited immigration after all this is what hes campaigned for his entire political career."

Sir Keir's pledge to reopen Brexit talks came after Vauxhall's parent company Stellantis told MPs it can't commit to making electric vehicles in the UK unless changes are made to the Trade and Co-operation Agreement with the EU.

Stellantis, the world's fourth biggest car maker, committed to making electric vehicles at its Ellesmere Port and Luton plants two years ago.

But in a submission to the Commons Business and Trade Committee, the company said Mr Sunak's Brexit deal was a "threat to our export business and the sustainability of our UK manufacturing operations".

The Windsor Framework was signed by EU chiefs and ministers in February.

It was hailed by Tory MPs as a fair compromise that will finally end trade friction between Britain and Northern Ireland.

Sir Keir said: "I don't think many people look at that deal and think it's working very well."

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Fury as Sir Keir Starmer says he wants to reopen Brexit negotiations AGAIN just months after new Rishi deal... - The Sun

The former UKIP chief and arch Brexiteer failed to rule out a return to frontline politics as he issued a scathing assessment of the Government's handling of EU withdrawal

Brexit has failed, Nigel Farage has sensationally admitted as he hinted at a political comeback.

The former UKIP leader, widely seen as the architect of Britain quitting the EU, said that leaving the bloc had failed as he blasted the Tories handling of withdrawal.

He told BBC2s Newsnight: What I do think is that we havent actually benefited from Brexit, economically, what we could have done.

What Brexit has proved, Im afraid, is that our politicians are about as useless as the commissioners in Brussels were.

We have mismanaged this totally and if you look at simple things such as takeovers, such as corporation tax, we are driving business away from our country.

Arguably, now were back in control we are regulating our own businesses even more than they were as EU members.

Brexit has failed.

But, challenged by TV host Victoria Derbyshire that economically, the UK would have been better off staying in (the EU), the former MEP insisted: I dont think that for a moment.

Mr Farage, 59, who presents a nightly show on GB News, also paved the way for a return to frontline politics.

The Mirror revealed in February how insiders at his latest political vehicle, Reform UK, believe the publicity-hungry showman could be tempted to throw his hat into the ring if he believed he could win.

If you can't see the poll, click here

In December, we told how he will not stand for Parliament for an eighth time having failed on seven previous occasions to win a Commons seat.

Quizzed on Monday night that his assessment of Brexit could mean a comeback for you then, he said: I wouldnt rule it out.

He added: Its not top of my bucket list but frankly weve not delivered on borders, weve not delivered on Brexit.

The Tories have let us down very, very badly.

Lib Dem foreign affairs spokeswoman Layla Moran fumed: "Farages hypocrisy is astounding.

The number one cheerleader for wrecking our relationship with Europe now seems to have finally realised the disastrous impact its had on our economy and on families up and down the country."

The UK voted by 52% to 48% to leave the EU in a crunch referendum on June 23, 2016.

The decision triggered David Camerons resignation as Prime Minister, ushered in Theresa Mays premiership - which ended with her unable to drive her withdrawal deal through a deadlocked Parliament - and led to Boris Johnson entering No10.

He won an 80-seat Commons majority with his 2019 election campaign slogan Get Brexit Done.

The UK formally left the EU on January 31, 2020.

Naomi Smith, chief executive of the Best for Britain internationalist campaign group, told the Mirror: Brexit has been a stain on our global standing, a drag on our economic growth, and a disaster for millions of EU citizens here and Brits in Europe.

"Finally, its main cheerleader admits the project has failed so its high time that both Government and opposition commit to repairing the damage, and fast.

* Follow Mirror Politics on Snapchat, Tiktok, Twitter and Facebook

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Nigel Farage admits Brexit has FAILED as he hints at political comeback - The Mirror

The world's fourth-biggest carmaker by sales has warned of a potential existential threat to large parts of the British car industry unless the government moves to alter the terms of its post-Brexit trade deal with the European Union.

In a submission to a parliamentary inquiry into the supply of batteries for electric vehicles released Wednesday, the parent company of Citroen, Fiat, Peugeot and Vauxhall said it may not be able to keep its commitment to manufacture its new fleet of vehicles in the UK without changes to the terms of the deal. It also urged the government to invest heavily in domestically produced batteries.

Stellantis said the deal represented a threat" to its export business and the "sustainability" of its manufacturing operations. The company employs around 5,000 people in the UK and committed to make electric vehicles in the country two years ago.

The stark warning is likely to pile pressure on the Conservative government to seek changes to the trade deal that came into force at the start of 2021 when the UK formally left the economic structures of the EU, including the frictionless single market and customs union. Executives from Stellantis are due to meet with Britain's business secretary, Kemi Badenoch, on Wednesday.

Though the trade deal ensured that tariffs would not be slapped on the export of goods from the UK to the EU, an array of often-complex non-tariff barriers has made it more difficult, and often more costly, for British businesses to sell their wares in the 27-nation bloc. Many manufacturers, such as BMW, Ford and Honda, have already scaled back or closed their operations in the UK in recent years.

Some of these barriers are being phased in over time. Stellantis said it wanted the current phase-in period to be extended until 2027, a move that would require the trade deal to be revised.

The company said cars made in Britain and exported to the EU face an onerous 10% tariff if the rules of origin aren't met, making them uncompetitive against exports from other major car-producing regions such as Japan and South Korea.

To reinforce the sustainability of our manufacturing plants in the UK, the UK must consider its trading arrangements with Europe, Stellantis said in its submission. We need to reinforce the competitiveness of the UK by establishing battery production in the UK.

Car production in the UK remains way below levels before the pandemic at just over 775,000 units in 2022, compared with around 1.3 million in 2019, according to figures from the Society of Motor Manufacturers and Traders.

The trade body's chief executive, Mike Hawes, backed up Stellantis' warning regarding the rules of origin for batteries, which he said pose a significant challenge to manufacturers in the UK and in the EU as higher tariffs could diminish the pace at which consumers transition towards electric vehicles.

At a time when every country is accelerating their transition to zero emission transport, and global competitors are offering billions to attract investment in their industries, a pragmatic solution must be found quickly, he said

The leader of the main opposition Labour Party, Keir Starmer, said the post-Brexit trade deal needed revision, but insisted he wasnt calling for the UK to rejoin the EU or its frictionless economic arrangements.

That doesnt mean reversing the decision and going back into the EU but the deal weve got, it was said to be oven-ready. It wasn't even half-baked, he told the BBC.

In 2016, the UK narrowly voted to leave the EU in a referendum. A general election has to take place by early 2025, with opinion polls suggesting Labour is on course to be the largest party.

Excerpt from:

Automaker warns over UK operations and calls for Brexit trade deal renegotiation - Japan Today

One of the worlds largest carmakers has said it will be unable to keep their commitment to make electric vehicles in the UK without changes to the Brexit deal.

Stellantis the parent company of Vauxhall, Citroen, Peugeot and Fiat which employs more than 5,000 people in the UK told a Commons inquiry into supply of batteries for EV manufacture that their UK investments were in the balance due to the terms of the trade deal.

The worlds fourth biggest car maker committed to making electric vehicles at its Ellesmere Port and Luton plants two years ago.

But in a submission to the inquiry, the company said the Brexit deal was a threat to our export business and the sustainability of our UK manufacturing operations.

Electric vans (left) at Vauxhalls plant in Ellesmere Port, Cheshire (Peter Byrne/PA)

It called on the Government to reach agreement with the EU to maintain existing rules until 2027, rather than next years planned changes which state 45% of an electric cars value should originate in the UK or EU to qualify for trade without tariffs.

Stellantis said the rise in the cost of raw materials during the pandemic and energy crisis meant it was unable to meet these rules of origin.

It said the upcoming rules would see 10% tariffs on trade with the EU and make domestic production and exports uncompetitive with Japan and South Korea.

The company said that would mean manufacturers will not continue to invest and will relocate.

To reinforce the sustainability of our manufacturing plants in the UK, the UK must consider its trading arrangements with Europe, Stellantis told the inquiry, listing Hondas closing of its site in Swindon and investment in the US as examples of its impact.

Stellantis said there will be insufficient battery production in the UK or Europe to meet government targets in phasing out petrol and diesel vehicles by 2025 and 2030.

It we are unable to rely on sufficient UK or European batteries, we will be at a major competitive disadvantage. In particular against Asian imports, they said.

We need to reinforce the competitiveness of the UK by establishing battery production in the UK.

Electric cars and batteries were among the final parts of the Brexit deal agreed between then Prime Minister Boris Johnson and President of the European Commission Ursula von der Leyen in 2020.

Originally published 17 May 2023 at 0:28 am

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Car giants urge Government to change Brexit deal for electric vehicle manufacturing - AOL UK