Motor Sector: Export Markets

Lord Stevenson of Balmacara Excerpts

Monday 14th September 2020 Lords Chamber

[Lord Stevenson of Balmacara (Lab) [V]]

My Lords, will not the problem here be rules of origin and the target of 50%, which the noble Lord referred to in an earlier response? However, according to the SMMT, the proportion of a car made in the UK is currently less than 25%. Does the noble Lord agree with the SMMT that, if the current UK and EU FTA negotiations fail to deliver rules of origin provisions, there will be a 10% tariff on finished vehicles and trucks and up to a 4% tariff on parts when exporting to the EU, and that this will cost the industry more than $4.5 billion annually? Therefore, is there a plan?

[Lord Grimstone of Boscobel (Con)]

My Lords, of course there is a plan. It is to conclude a successful negotiation with the EU in relation to these matters. That is vital because the automotive sector is extremely important to the UK. The UK exports 80% of vehicles manufactured, which accounts for no less than 14% of UK-manufactured exports.