he Society of Motor Manufacturers and Traders (SMMT) has called on government to put the automotive sector at the heart of future trade negotiations, after publishing a new report today confirming vehicles as the UK’s single most valuable goods trade export.
Vehicle export revenues reached £27 billion in 2020, making them more valuable to the UK than power-generating machinery and gold, even during a year when the global pandemic disrupted trade flows and shut down markets around the world.
The UK automotive sector as a whole generated a total trade revenue of £74 billion, underlying its monumental importance to international trade, with more than 80% of British-built cars and more than 60% of light commercial vehicles destined for export.
With hopes rising worldwide that the pandemic is now in retreat, the UK’s trade policy must now take advantage of the opportunities from a post-Brexit, post-fossil fuel world to restore growth and jobs with automotive central to this ambition.
With the global car market expected to grow significantly in regions such as Asia and Eastern Europe, SMMT is calling for future trade deals to include dedicated automotive annexes and provisions to reduce tariffs and regulatory barriers. It also recommends establishing Rules of Origin that will reflect the UK’s future supplier base as manufacturing moves away from the combustion engine, as well as ensuring manufacturers have the ability to recruit top talent from around the world to drive growth.
AutoBrief Snippets
- SMMT calls for automotive sector to be the engine of the UK’s future international trade deals after new report reveals vehicles are the nation’s most valuable exported good, worth £27 billion.
- Total automotive sector trade drops -26% during pandemic-hit 2020 but still reaches £74 billion, benefiting every UK region.
- Long-term global car market growth provides major opportunity to accelerate economy.
- Supportive Rules of Origin to reflect post-Brexit supplier base and gigafactory investment will aid Global Britain in leading worldwide transition to electric vehicles.