UK’s new trade strategy can drive growth
Arriving a month into the new government’s growth agenda, this week’s announcement that a new trade strategy will be a cornerstone of wider industrial plans represents a major opportunity for automotive. Given that the sector is, traditionally, the UK’s largest exporter of manufactured goods in terms of value and generates £115bn in total trade, the potential for further growth is significant.
Government’s immediate focus on strengthening relationships with some of our key vehicle export destinations, including the EU, South Korea and Turkey, is therefore welcome, alongside developing future growth potential with partners in the Gulf and India. At the same time, we should safeguard trade with other Euro-Mediterranean trading partners and restart discussions on a modernised trade deal with Canada, given that the vast majority of UK car exports to the country are currently subject to 6.1% tariffs.
Our sector has thrived on the basis of free and fair trade, and it will continue to be a priority not only to drive growth for existing businesses but to attract and secure fresh inward investment. Such agreements must work for the specific needs of UK Automotive, balanced for both sides, with workable rules of origin that don’t place British firms at a disadvantage. They should also help facilitate our green transition, promoting trade in the increasingly electrified vehicles built in Britain while enabling access to critical raw materials from overseas which are vital for EV manufacturing growth.
Given the importance of global trade across our diverse industry, we hope to see an ambitious export strategy outlined soon. Meanwhile, SMMT has already led delegations, trade missions and exhibition pavilions to countries including Japan, India, Thailand and the US this year, with more still to come. These include pavilions at Germany’s Automechanika Frankfurt, the global-leading aftermarket trade fair, followed by CEE Automotive Supply Chain in Slovakia, home to some of the world’s biggest automotive companies. SMMT will continue to provide myriad opportunities for UK businesses to enhance their global engagement at such events – so to get involved, contact our International team.
