Money CBI warns UK car industry faces ‘extinction’ on exit from customs union

17:12  13 june  2018
17:12  13 june  2018 Source:   msn.com

MPs to vote on amended Brexit Bill on 12 June

  MPs to vote on amended Brexit Bill on 12 June MPs will vote on the Brexit Bill which the Lords have suggested 15 amendments to next week. Tory chief whip Julian Smith sent a letter to his Conservative colleagues announcing the European Union (Withdrawal) Bill will be coming back to the Commons on 12 June.He requested all Tory MPs be on the parliamentary estate as there will be several votes on the bill which has suffered 15 defeats at the hands of the House of Lords.

Carolyn Fairbairn, director general of the Confederation of British Industry ( CBI ), will warn the Government that time is running out to make progress on Brexit and urge the Prime Minister to put replicating the customs union at the top of the trade agenda.

The CBI boss said parts of the car sector could disappear ( Reuters ). The UK ’s motor industry faces extinction if the UK leaves the EU customs union after Brexit, CBI president Paul Drechsler has warned .

  CBI warns UK car industry faces ‘extinction’ on exit from customs union © Getty Parts of the UK car industry face extinction unless the UK remains in the customs union, the head of the Confederation of British Industry has said.

Speaking to BBC Radio 4’s Today programme, the president of the CBI Paul Dreschler said remaining in the EU customs union was crucial for British car manufacturers, and said there was “zero evidence” that trade deals with non-EU countries would provide economic benefits to the UK.

“If we do not have a customs union, there are sectors of manufacturing society in the UK which risk becoming extinct,” he said, pointing to the car industry in particular. To avoid such a crisis, the UK must negotiate “real frictionless trade” with the EU, he said, in the latest sign of frustration among businesses over how the government is handling the Brexit process.

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Ms Fairbairn added: “A customs union is part of a practical, real-world answer.” Richard Tice, co-chairman of Leave Means Leave, accused the CBI of being “back in Project Fear mode, just as it was during the Farage warns UK will be in even WORSE position after Brexit in FURIOUS attack on May.

The devastating impact of a hard Brexit on the UK car industry was laid bare on Tuesday to MPs, who were told every 15 minutes of customs delays On Monday, European business leaders including Britain’s CBI warned that the government had just two weeks to make progress on a Brexit divorce

Related: Customs union: The battleground that will decide the fate of Brexit

Higher costs associated with import and export tariffs as well as border delays would hit individual companies as well as the entire supply chain, he said.

Mr Dreschler also said the UK government had not given businesses the clarity they need in order to make long-term investment decisions: “We still haven’t got clarity about the future direction, about where we’re heading, what will the future relationship with Europe be, at a level of detail that matters for investment.”

  CBI warns UK car industry faces ‘extinction’ on exit from customs union © Rex Earlier this year MPs said in a report that the UK’s car industry would be “hugely” damaged if Britain crashed out of the EU without a trade deal.

In May, the Society of Motor Manufacturers and Traders warned Brexit could hit the industry’s growth. “The ability of UK plants to attract the next wave of new models and drive future growth depends upon maintaining these competitive conditions after Brexit,” said Mike Hawes, SMMT chief executive.

EU firms advised not to use British parts ahead of Brexit

  EU firms advised not to use British parts ahead of Brexit European governments are advising businesses not to use British parts in goods for export ahead of Brexit, Sky News has established. In its advice rolled out to all Dutch businesses, the Dutch government has told its exporters that "if a large part of your product consists of parts from the UK" domestic exporters may lose free trade access under existing deals.The advice says: "Brexit will have consequences for exports outside the EU."After Brexit, parts made in the UK no longer count towards this minimum production in the European Union.

"There is a risk that the auto industry in the UK faces extinction if there's no customs union after Brexit," warned Paul Drechsler, president of the Confederation of British Industry ( CBI ).

Carolyn Fairbairn, director general of the Confederation of British Industry ( CBI ), will warn the Government that time is running out to make progress on Brexit and urge the Prime Minister to put replicating the customs union at the UK cars 'won't qualify for free trade deals' post-Brexit. 11:21.

A spokesperson for the Department for Exiting the EU told the BBC the government was “focused on delivering a Brexit that works for the whole of the UK — including businesses across the economy”.

NOW SEE: Layoffs arrive in Brexit Britain - and car workers are up first

  CBI warns UK car industry faces ‘extinction’ on exit from customs union © Getty

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Airbus warns it ‘could quit UK if there is a no-deal Brexit’ .
The firm employs 14,000 people at 25 sites across the country.The firm, which employs 14,000 people at 25 sites across the country, said it would “reconsider its investments in the UK, and its long-term footprint in the country” if Britain crashed out of the single market and customs union without a transition agreement.

Source: http://uk.pressfrom.com/news/money/-263832-cbi-warns-uk-car-industry-faces-extinction-on-exit-from-customs-union/

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