Europe remains our largest trading partner
We share billions of pounds’ worth of trade with the EU, which is by far our largest and closest automotive partner, so progress at this 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.
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.
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 Annual Congress held in Yokohama. We were pleased to join the Advanced Propulsion Centre and Department for Business and Trade representatives, helping promote the UK and some of our nation’s most innovative companies that were exhibiting at the show. We also took the opportunity to meet with major OEMs and businesses, sister automotive associations and Japan’s Minister of Economy, Trade and Industry, to compare notes on trade, decarbonisation and progress on industrial competitiveness.
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. Indeed, while we still need a comprehensive and aligned industrial and trade strategies to address key challenges – such as energy and investment, prioritising innovation and bolstering our domestic market – that is not to lose sight of the importance of fostering global partnerships that help industry deliver growth at home and fly the UK’s flag abroad.
Global competitiveness is top of the agenda at next month’s SMMT International Automotive Summit, which will reconvene key stakeholders across industry, government and aligned sectors to explore critical issues such as decarbonisation, innovation, market dynamics and manufacturing capacity. With speakers including business and trade secretary Rt Hon Jonathan Reynolds MP, Financial Times economics editor Chris Giles and many more influential industry representatives, the event promises crucial insights to guide the industry through the decade ahead. Tickets are now available and more information can be found here.