A solid Brexit could make a halt on the hard shoulder more expensive for British motorists.The Society of Motor Manufacturers and Traders calculated estimated the expenses of repairing a car could grow by as much as ten percent if Britain exits the European Union without going into a trade agreement.Because to tariffs and trade barriers, Britain’s shared car repair bill could yield by more than £2bn if it denies the bloc and defaults to World Trade Organisation (WTO) rules.
The report states that a WTO tariff on imported car parts of between 2.5 per cent and 4.5 per cent would arise in car owners paying an extra £21 a year for replacement parts. Additional £49 would add to regulatory barriers, customs delays and subsidies.Moreover, SMMT chief executive Mike Hawes says, “If we don’t secure a new trading relationship with the EU that is free of tariffs and customs checks, British consumers could face significant increases to their annual car repair bill due to new tariffs and other trade barriers.”
Regardless of similar concerns from different sectors, the warning comes about the possible implications of a substantial Brexit. Telling French newspaper Le Monde that Britain decided not to cut tax and regulations to undercut EU countries, the report also comes on the same day Chancellor Philip Hammond sought to alleviate the government’s tone on Brexit.
Implementing a ‘cliff-edge’ Brexit in which the UK falls back on WTO rules if a trade agreement can’t be sustained was a practical option, Prime Minister Theresa May has repeatedly said that “no deal is better than a bad deal.” Repeating cross-industry calls for an individual market membership amid confusion over the government’s plans, according to SMMT chief exec Hawes, “Government must now prioritise an interim arrangement that maintains single market and customs union membership until the right trade deal with the EU is implemented.”