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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

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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.

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"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”.

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

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Brexit Secretary could be set to quit over Irish border row as he issues ultimatum to Theresa May due to 'fudged' customs deal .
Friends of the Brexit Secretary suggested his frustrations could spill over, after No 10 circulated proposals that critics say could shackle the UK to the customs union indefinitely. The plans, on the so-called Irish backstop, appeared to open up the possibility that the UK could remain bound by EU tariffs and rules until a resolution is found for the border problem.Mr Davis yesterday refused to say whether he would stay in his job if the plans go ahead without his approval, saying: ‘That’s a question, I think, for the Prime Minister to be honest.

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