The UK and the European Union expect a solution to the upcoming tougher Brexit rules ‘soon’. This reports the UK’s secretary of state for Business, Energy and Industrial Strategy, Kemi Badenoch, in an interview with Bloomberg.
With the upcoming stricter rules, automakers and the German industry warned that factories will have to close due to the current tariffs.
“This is not a UK problem, but an EU-UK problem. It has to come from both sides,” Badenoch told the Qatar Economic Forum in Doha. She also suggested that parts of the current agreement should be adjusted. “Many of the agreements we have put in place just don’t work with the things that are happening now.”
By this, she is referring to changes in the war between Russia and Ukraine. “We need to be as flexible as possible,” Badenoch said.
The post-Brexit rules are part of a growing list of challenges facing the automotive industry in Britain. According to Automotive News Europe, vehicle exports shrank by 10 per cent, and the country has failed to win over major new investment. Automakers often chose to set up factories in other countries.
According to former Aston Martin CEO and former Nissan operating officer, Andy Palmer, British automakers are suffering because of “a lack of action” by the UK government. According to him, the UK has a chance to become competitive again if more attention is paid to trade with the US and China. He told the British Parliament this on Tuesday.
