The news that British businesses could be given a 21-month transition period after the nation’s exit from the European Union has been greeted positively by the Society of Motor Manufacturers & Traders (SMMT).
The Government's proposed deal, outlined on 14 November, would allow UK-based concerns to continue to operate as normal until the end of 2021, when any new international trading regulations would come into effect.
SMMT CEO Mike Hawes said: “For the automotive industry, Brexit is about damage limitation. The outline agreement is a positive step in avoiding the devastating consequences of no-deal and securing a transition period”.
With 80% of cars produced in Britain going to export, manufacturers are concerned that the addition of customs and security processes at ports could slow production and shipping and raise distribution costs.
The temporary maintenance of existing agreements would allow manufacturers to sell more cars and strengthen their market position in the run-up to Britain’s departure from the EU's customs union.
