(Excerpt)
SMMT warns future UK PM against no-deal
Brexit
The Society of Motor Manufacturers and Traders (SMMT) has called
on a future UK prime minister to secure a favourable Brexit deal.
In a statement made to coincide with the release of the lobby
group's 2019 UK Automotive Trade Report, it has warned that new
calculations have shown that a hard Brexit could lead to border
delays worth GBP50,000 per minute to the UK automotive industry,
which it notes could reach GBP70 million per day in a worst-case
scenario. It also noted that this would come on top of tariffs
under World Trade Organization (WTO) terms that would amount to
GBP4.5 billion per year for passenger cars alone.
Significance: The terms under which the UK will leave the EU
have been thrown further into doubt by current Prime Minister
Theresa May stepping down. This has led to a contest within the
ruling Conservative Party for her replacement, which has been
whittled down to two contenders, Jeremy Hunt and Boris Johnson. One
of their key differences is over how the country will leave the EU.
Johnson has stated that he would take the country out of the EU by
the current deadline of 31 October, while Hunt has told BBC News
that he would leave the EU without a deal, but not if there was a
"prospect of a better deal". Both however believe they will be able
to reopen the discussions with the European Union (EU) concluded
under May, something to which the EU has been strongly objecting.
It is also questionable whether both will find themselves in the
same position as May in that they are unable to get any deal
through the House of Commons. The decision over the next leader
should be concluded during the next fortnight when the membership
of the Conservative Party are given their say on the matter.
