Brexit: The West Midlands and Rules of Origin
Andy Street
First Mayor of the West Midlands and former MD of John Lewis, now looking to continue my journey in public service | Chair, Birmingham Rep
With so much of our economy and many jobs reliant on the exporting of goods, West Midlands’ manufacturers need to be able to export goods without tariffs, quotas or delay. Not getting this right could see our exports become incredibly uncompetitive.
In order to qualify for tariff-free trade, the exported product needs to be made up of around 55% UK parts to be classed as British. But many WM products cannot reach this threshold because parts are imported from all over. A car, for example, may only be 25% UK parts.
The UK has proposed that parts produced in the UK, EU, and third countries with free trade deals should count towards the threshold (as is the current arrangement for EU nations). But the EU has rejected this, allowing only UK and EU parts to count.
This means the EU would deliberately make it extremely difficult for some West Midlands exports to the bloc to be tariff-free. Local research suggests tariffs would cause a hit of around 12% to our GDP, as well as add about ￡3,000 onto the cost of a locally produced car.
In order to avoid this scenario, our region has been lobbying Government since the referendum to ensure we get the preferential rules of origin right in any EU trade deal. And so as talks with the EU now enter a critical stage, we have gone public with our lobbying.
I have written to Lord Frost, Liz Truss, and our region's MPs stressing the importance of this issue. It is a point the EU must cede on, and I have every confidence in the Government to secure the deal that we need to protect our exports, and in turn local jobs.
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2 年Andy, thanks for sharing!
Executive Search MD | Supporting Manufacturing & Engineering Companies In The Midlands, Shropshire & Staffordshire To Recruit & Retain Great Staff & Visionary leaders | 24 Years In The Recruitment Industry.
4 年After what this country has been through this year we just cannot crash out with a “no deal” the economy is starting to recover from the past 6 months the thought of now dealing with this is quite frightening!
Lead Innovator - Hypuljet Ltd UK
4 年Andy I think you got your answer to your wish .. it is not going to happen. This was "Have cake and eat it of your stupid David Davies" - you know the guy who got paid loads saying "We will have a deal by end of summer its so easy" Sensible people stated " EU cannot possible allow UK to have preferential Rules WTO Rules does not allow -- All third countries would have to have the same agreement - end of common market - Andy it has been Tory Govt- ERG - Tory MPs and all supported by Labour Leaders to get Brexit I have to think that the facts of the matter are so straight forwards, that we the people are being played ... people such as yourself making out that these changes are small, when indeed they are a "Pillar of the EU Single Market" Andy --just go and tell China You and your Tory chums want completely Open Access to their market -- tell them they cannot insist on companies having to have Joint Ventures and allow IP to be used widely in China -- or go to the USA and tell their Chicken Farmers to keep their chicken but we want Open access to their armaments market ... You are a Tory you voted for this or at least I have not read where you have shouted it down. Brexit the whole Tory Party & Labour Party Leadership
Technical specialist in placemaking, cycling and walking
4 年I’m sorry but how does a product claiming 55% of parts made in a “third country but with a free trade deal” can be considered British? You can’t have your extremely loosely defined cake and eat it. Sovereignty means sucking it up and living with the consequences I’m afraid.
Mortgage & Protection Specialist. Equity Release Advisor. Will Writer
4 年Not sure why the EU would agree to this as it certainly would work against their own interests. What’s to stop other car manufacturers from Asia and America setting up here, importing parts from Asia and America so that we could brand them as UK made in order to facilitate cheaper exports to the EU? The fact that we are even lobbying for something that we had as of right Pre 2016 just makes the whole Brexit shambles laughable.