The new United Kingdom Commercial Agreement, announced with Fanfarria as an important step in transatlantic economic relations, sacrifices little benefit to the automotive sector of the United Kingdom, according to audit experts and taxes of Blick Rothenberg.
The agreement, the official entitled the general terms for the United States of America and the United Kingdom of Great Britain and Northern Ireland, Ireland, the agreement for the prosperity of the agreement, will reduce tariffs on British car exports to the US. UU. From 27.5% to 10%. However, Robert Salter, director of Blick Rothenberg, argues that the agreement simply limits the damage based on the previous protectionist policies of President Trump and does not open new market opportunities.
“While a 10% tariff is clearly better than 27% imposed under President Trump, it is important to remember that under the previous administration of Joe Biden, cars imports from the United Kingdom faced only a 2.5% tariff,” said Salter.
The 10% rate will apply only to the first 100,000 vehicles imported to the US each year. The United Kingdom exported approximately 101,000 vehicles to the United States last year, which means that the agreement effectively limits growth.
“This limit means that the automotive sector of the United Kingdom cannot expand exports to the US. “Everything that the agreement makes is to preserve the status quo; it does not help the sector to grow.”
He added that, although the agreement could safeguard existing jobs and exports, it does not create new advantages or significant commercial incentives for investment in automotive production of the United Kingdom for the US market.
Salter also questioned the widest economic value of the agreement, qualifying it as a limited framework that does not reach macrococonic profits.
“While the agreement could provide a base for more significant commercial terms in other sectors, this ITILF agreement will not deliver significant victories for the general economy of the United Kingdom,” he said.
Comments contrast with more optimistic reactions from some corners of the government and industry after the announcement of the agreement, which included tariff relief for the United Kingdom steel and certain other exports.
The Society of Motor Manufacturers and Merchants (SMMT) previously welcomed the agreement to eliminate “an immediate threat” for exports, but experts such as Salter warn that this should not be confused with progress.
“This is a damage limitation agreement,” said Salter. “It prevents more damage, but it is not a commercial victory in the way it is presented.”
As the United Kingdom seeks to boost exports and the manufacturing base of its crop, Salter urged political leaders to seek more friendly and specific commercial terms in the sector, positionally in high -value export industries such as automotive, aerospace and green technology.
With the national cars production under pressure and commercial competitiveness increasingly vital, the last agreement may have bought the United Kingdom at some point, but not the progress that the automotive sector needs.
Jamie Young
Jamie is a senior reporter of Business Matters, who brings more than a decade of experience in commercial reports of the United Kingdom. Jamie has a business administration title and participates regularly in conferences and industry workshops. When he does not inform about the last business development, Jamie is passionate about the mentoring of promising journalists and businessmen to inspire the next generation of business leaders.
