UK-EU trade deal ‘imperative’, says SMMT
The Society of Motor Manufacturers and Traders (SMMT) has restated its call for a UK-EU trade deal to protect the automotive sector.
It has said the EU remains the UK’s largest trading partner and avoiding tariffs is critical for the automotive industry.
SMMT CEO Mike Hawes said: “We share billions of pounds worth of trade with the EU, which is by far our largest and closest automotive partner, so progress at [last] week’s UK-EU Summit towards a deeper strategic partnership is significant – especially amid the broader geopolitical headwinds.
“Particularly welcome was the agreement to protect steel from tariffs and the intention to link the UK and EU’s carbon markets, a long-held ambition given the potential to ensure greater price stability and reduced costs for manufacturers and consumers.”
UK-EU trade deal
“As talks continue, it is imperative that both sides remain unequivocally committed to avoiding tariffs, improving customs cooperation and enhancing our regulatory partnership for automotive goods. The UK-EU agreement comes on the back of breakthroughs with India and the US – all deals we hope will pave the way for the removal of barriers to trade, and improve our industry’s prospects for economic growth and inward investment.”
Hawes continued: “Another long-standing partner is Japan and, given the challenges our respective automotive sectors face, it was an opportune time to visit this week with the JSAE Congress held in Yokohama. We were pleased to join the APC and Department for Business and Trade representatives, helping promote the UK and some innovative UK companies who were exhibiting at the Show.”
Decarbonisation
“We also took the opportunity to meet with major OEMs, businesses and sister automotive associations and country’s Minister of Economy, Trade and Industry to compare notes on trade, decarbonisation and industrial competitiveness progress.
“As our fifth largest vehicle export market and third for imports – and with bilateral trade up nearly half in the first four months of 2025 – continued focus on fair and open UK-Japan trade will only further strengthen our mutually beneficial relationship.
“Recent developments on global partnerships represent steps in the right direction for the UK automotive sector. We still need a comprehensive and aligned industrial and trade strategies that address key challenges such as energy and investment, prioritise innovation and bolster our domestic market, but that is not to lose sight of the importance of fostering global partnerships that will help secure our industry’s ability to deliver growth at home and fly the UK’s flag abroad.”
