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
Mario Lopez, Tiffani Thiessen react to Dustin Diamond’s cancer diagnosis | Page Six Celebrity News
January 15, 2021
x4Hz209X0eg
Why 'Bling Empire' stars were skeptical to join the Netflix reality series | Page Six Celebrity News
January 15, 2021
3oHt4Cqr1J0
Bella Thorne defends Armie Hammer against allegations | Page Six Celebrity News
January 15, 2021
W0-pu9wJVkE
Cannabis Activist Adam Eidinger Offering Free Weed with COVID Vaccine | TMZ
January 19, 2021
c-OK45k_pUw
Dr. Dre Back in the Studio After Brain Aneurysm | TMZ TV
January 19, 2021
BEIFyd-jdvI
Michael B. Jordan & Lori Harvey Steam Up The Ocean | TMZ TV
January 19, 2021
oqqXQ5gIyg8
"Bachelorette" Stars Clare Crawley & Dale Moss Split
January 19, 2021
z44RPxheM9w
Alexis Sharkey's Cause of Death Revealed | E! News
January 19, 2021
Yny8FX1A68M
"The Bachelor's" Sarah Trott Speaks Out After Dramatic Exit | E! News
January 19, 2021
d9JrjIoviiQ
Netflix Shares Skyrocket Following Blowout Q4 Results
January 19, 2021
plCb9L5qQeQ
How The Bee Gees Brothers Found Success As Songwriters
January 19, 2021
MpWcrHh7-_E
'Silence of the Lambs' Reunion! Anthony Hopkins & Jodie Foster Talk Dr. Lecter | Actors and Actors
January 19, 2021
u2QjdRaLfa8
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
Jan
ENGLAND: Premier League
Leicester City - Chelsea
19
Jan
ENGLAND: Championship
Derby County - Bournemouth
19
Jan
ENGLAND: Championship
Rotherham - Stoke City
19
Jan
ENGLAND: Championship
Watford - Barnsley
19
Jan
ENGLAND: Championship
Reading - Coventry
19
Jan
SPAIN: La Liga
Alaves - Sevilla
19
Jan
ENGLAND: Premier League
West Ham United - West Bromwich Albion
19
Jan
SPAIN: La Liga
Cadiz - Levante
19
Jan
SPAIN: La Liga
Real Valladolid - Elche
18
Jan
ENGLAND: Premier League
Arsenal - Newcastle United
18
Jan
ITALY: Serie A
Cagliari - AC Milan
17
Jan
ITALY: Serie A
Inter Milan - Juventus
17
Jan
ENGLAND: Premier League
Liverpool - Manchester United
17
Jan
ENGLAND: Premier League
Sheffield United - Tottenham Hotspur
17
Jan
ENGLAND: Premier League
Manchester City - Crystal Palace
17
Jan
GERMANY: Bundesliga
Bayern Munich - SC Freiburg
17
Jan
ITALY: Serie A
Napoli - Fiorentina
17
Jan
ITALY: Serie A
Atalanta - Genoa
16
Jan
GERMANY: Bundesliga
Borussia Dortmund - Mainz
16
Jan
ENGLAND: Premier League
Fulham - Chelsea
15
Jan
ITALY: Serie A
Lazio - Roma
14
Jan
ENGLAND: Premier League
Arsenal - Crystal Palace
13
Jan
ENGLAND: Premier League
Manchester City - Brighton
13
Jan
ENGLAND: Premier League
Tottenham Hotspur - Fulham
13
Jan
GERMANY: National cup
Holstein Kiel - Bayern Munich
12
Jan
ENGLAND: Premier League
Burnley - Manchester United
12
Jan
SPAIN: La Liga
Atletico Madrid - Sevilla
10
Jan
ITALY: Serie A
Juventus - Sassuolo
10
Jan
ITALY: Serie A
Udinese - Napoli
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.