January 21, 2020

U.K. to Ensure No Brexit Cliff-Edge for Carmakers, Minister Says
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. U.K. carmakers including Nissan and Jaguar Land Rover won’t face a regulatory cliff-edge that damages their competitiveness in European markets at the end of 2020, according to Prime Minister Boris Johnson’s government.Nadhim Zahawi, a business minister, said he’s “confident” British negotiators will be able to broker a deal with the European Union which ensures no tariffs or quotas on car parts and keeps just-in-time supply chains running when the 11-month Brexit transition period is due to expire at the end of the year.Opposition politicians have warned Britain faces a no-deal divorce on Dec. 31, disrupting trade and damaging the economy, if Johnson fails to negotiate a free trade deal by then. EU leaders have said there isn’t time to broker a full agreement under the prime minister’s schedule for ending the transition, during which trading rules will largely be unchanged.“Those who are fighting the old battles of Leave/Remain still have this binary view of the world of ‘oh my goodness, if we can’t get a deal there is going to be a cliff-edge’ -- I don’t believe that is true,” Zahawi said in an interview. “The heads of terms agreed by the U.K. and the EU say there are no tariffs, no quotas, and that is what we are going to strive for. And that, I believe, we will be able to deliver.”The U.K. auto industry suffered a series of setbacks in 2019 as production slumped and manufacturers idled plants to cope with three Brexit deadlines that came and went. Jaguar Land Rover Automotive Plc announced thousands of job cuts, Honda Motor Co. said it will close its only British factory in 2021 and Nissan Motor Co. scrapped plans to build the X-Trail sports utility vehicle in Sunderland, northeast England. Meanwhile PSA Group has suggested its Vauxhall factory in England’s Ellesmere Port is in jeopardy if Brexit affects profitability.TariffsRuling out tariffs and quotas will eliminate the bulk of paperwork, according to Zahawi. “The rest then becomes about the actual quality of the product and that already works for manufacturers around the world that are selling into the EU,” he said. “Components have to be made so that they satisfy British standards in the future as well as satisfying European standards. It is not incompatible.”Chancellor of the Exchequer Sajid Javid warned business leaders they’ll need to adjust to new rules after Brexit because the U.K. won’t align with European regulations, according to a Financial Times interview published over the weekend. But Zahawi suggested the U.K. is unlikely to diverge too much.“We will make sure our rules are as good as the industry needs to be in order to take the opportunity of selling into America, selling into Europe, selling all over the world,” Zahawi said. “The chancellor was stating a fact which was that we will not be a rule-taker. But at the same time, whether it’s the chemicals industry or the auto industry, we already manufacture to the same quality standards across the board.”Javid reiterated on Tuesday that the U.K. will be out of the EU’s single market and customs union when it leaves the bloc. “We will not be rule-takers,” he said in Brussels before a meeting of EU finance ministers. “At the same time we want a deep, comprehensive free-trade agreement and that’s what we’re working on.”The chancellor’s comments come after an International Monetary Fund report said the U.K. economy will outperform the Eurozone this year and next -- as long as there’s a gradual transition to a new relationship with the EU.“It will be a very important time for British business,” Javid said. “I can see a British economy that continues to go from strength to strength.”(Updates with Javid comment in ninth paragraph)\--With assistance from Jessica Shankleman.To contact the reporter on this story: Alex Morales in London at amorales2@bloomberg.netTo contact the editors responsible for this story: Tim Ross at tross54@bloomberg.net, Thomas Penny, Stuart BiggsFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Related Stories
Latest News
Top news around the world
Coronavirus Disease

Coronavirus disease (COVID-19) is an infectious disease caused by a newly discovered coronavirus.

Most people infected with the COVID-19 virus will experience mild to moderate respiratory illness and recover without requiring special treatment. Older people, and those with underlying medical problems like cardiovascular disease, diabetes, chronic respiratory disease, and cancer are more likely to develop serious illness.

Around the World

Celebrity News

> Latest News in Media

Watch It
Teresa's engagement, Lala's breakup and more Virtual RealiTea drama | Page Six Celebrity News
October 22, 2021
pL6thz9zRWc
Cynthia Bailey wants to protect husband Mike Hill from ‘reality TV curse’ | Page Six Celebrity News
October 22, 2021
TO1ltz90FV0
De Niro’s estranged wife won’t get half of his acting income | Page Six Celebrity News
October 22, 2021
SIQj1AuioZs
Sisqo Has Advice For Drake On Dealing With Impostors, Don't Sue Them | TMZ
October 23, 2021
VkjnwYMtkRo
Snoop Dogg's 50th Birthday Party, Fully Lit Old School Playas Ball | TMZ TV
October 22, 2021
kc62svaZeVo
Leslie Jordan Conflicted Over Dave Chappelle Special and Netflix Controversy | TMZ TV
October 22, 2021
te1ul4AYesM
Issa Rae and Yvonne Orji Dish on Season 5 of ‘Insecure’
October 23, 2021
KA7ZEjY3rvk
Kristen Stewart Opens Up on 'Eternals' LGBTQ Inclusion, Ruby Rose Battles with WarnerBros | The Take
October 22, 2021
7d3MFpaP2L8
AT&T Stock Falls Following Q3 Earnings Results
October 21, 2021
LZNkmpoVefA
JoJo Siwa's MAJOR "DWTS" Hair Transformation
October 23, 2021
4cF2KFqVccI
Kendall Jenner & Devin Booker's Courtside PDA
October 23, 2021
Zfp0pDcZAJU
Necessary Realness: Kravis Engaged & Scott Disick's Red Flags | E! News
October 23, 2021
qxT1EMh6s3o
TV Schedule
Late Night Show
Watch the latest shows of U.S. top comedians

Sports

Latest sport results, news, videos, interviews and comments
Latest Events
19
Nov
ASIAN CHAMPIONS LEAGUE: Group H
Sydney FC - Shanghai SIPG
17
Nov
UEFA NATIONS LEAGUE A: Group Stage
Spain - Germany
14
Nov
UEFA NATIONS LEAGUE A: Group Stage
Germany - Ukraine
08
Nov
ENGLAND: Premier League
Manchester City - Liverpool
08
Nov
ENGLAND: Premier League
Arsenal - Aston Villa
08
Nov
SPAIN: La Liga
Valencia - Real Madrid
08
Nov
ITALY: Serie A
AC Milan - Verona
08
Nov
ENGLAND: Premier League
West Bromwich Albion - Tottenham Hotspur
08
Nov
ITALY: Serie A
Bologna - Napoli
08
Nov
ITALY: Serie A
Genoa - Roma
08
Nov
ITALY: Serie A
Atalanta - Inter Milan
08
Nov
ITALY: Serie A
Lazio - Juventus
08
Nov
GERMANY: Bundesliga
Bayer Leverkusen - Borussia Monchengladbach
08
Nov
ENGLAND: Premier League
Leicester City - Wolves
08
Nov
GERMANY: Bundesliga
Wolfsburg - Hoffenheim
08
Nov
SPAIN: La Liga
Real Valladolid - Athletic Bilbao
08
Nov
SPAIN: La Liga
Levante - Alaves
08
Nov
SPAIN: La Liga
Real Sociedad - Granada CF
08
Nov
ITALY: Serie A
Torino - Crotone
08
Nov
SPAIN: La Liga
Getafe - Villarreal
07
Nov
GERMANY: Bundesliga
Borussia Dortmund - Bayern Munich
07
Nov
ENGLAND: Premier League
Everton - Manchester United
07
Nov
ENGLAND: Premier League
Chelsea - Sheffield United
07
Nov
SPAIN: La Liga
Atletico Madrid - Cadiz
07
Nov
SPAIN: La Liga
Barcelona - Real Betis
07
Nov
GERMANY: Bundesliga
Augsburg - Hertha Berlin
07
Nov
GERMANY: Bundesliga
Stuttgart - Eintracht Frankfurt
07
Nov
GERMANY: Bundesliga
RB Leipzig - SC Freiburg
07
Nov
ENGLAND: Championship
Rotherham - Preston NE
07
Nov
ITALY: Serie A
Parma - Fiorentina
07
Nov
ENGLAND: Championship
Watford - Coventry
07
Nov
ENGLAND: Championship
Norwich City - Swansea City
07
Nov
ENGLAND: Championship
Blackburn - QPR
07
Nov
ENGLAND: Championship
Derby County - Barnsley
07
Nov
ENGLAND: Championship
Huddersfield - Luton
07
Nov
ENGLAND: Championship
Nottingham Forest - Wycombe Wanderers
07
Nov
ENGLAND: Premier League
West Ham United - Fulham
07
Nov
ENGLAND: Championship
Sheffield Wednesday - Millwall
07
Nov
ENGLAND: Championship
Brentford - Middlesbrough
07
Nov
ENGLAND: Championship
Birmingham - Bournemouth
07
Nov
SPAIN: La Liga
Sevilla - Osasuna
07
Nov
ITALY: Serie A
Benevento - Spezia
07
Nov
ENGLAND: Premier League
Crystal Palace - Leeds
04
Nov
CHAMPIONS LEAGUE: Group stage, Group G
Ferencvaros - Juventus
04
Nov
CHAMPIONS LEAGUE: Group stage, Group G
Barcelona - Dynamo K.
03
Nov
CHAMPIONS LEAGUE: Group stage, Group A
Salzburg - Bayern Munich
03
Nov
CHAMPIONS LEAGUE: Group stage, Group D
Atalanta - Liverpool
Find us on Instagram
at @feedimo to stay up to date with the latest.
Featured Video You Might Like
zWJ3MxW_HWA L1eLanNeZKg i1XRgbyUtOo -g9Qziqbif8 0vmRhiLHE2U JFCZUoa6MYE UfN5PCF5EUo 2PV55f3-UAg W3y9zuI_F64 -7qCxIccihU pQ9gcOoH9R8 g5MRDEXRk4k
Copyright © 2020 Feedimo. All Rights Reserved.