© Reuters. Honda export automobiles are parked on the dockside on the ABP port in Southampton, Britain August 31, 2019. REUTERS/Hannah McKay / File Photo
LONDON (Reuters) – Britain’s resolution to droop talks with Canada on a free commerce deal creates the danger of tariffs being imposed on British-made automobiles offered in Canada, the UK automobile trade warned on Friday, because it urged the 2 sides to return to negotiations.
Under Britain’s current commerce take care of Canada, which successfully rolled over after Brexit, UK carmakers can till April export autos containing EU-manufactured components to Canada with out going through tariffs.
“If UK car exports can’t use EU parts and components to avoid additional duties it creates a risk that tariffs, potentially charged on top of luxury goods taxes, could be reintroduced,” Mike Hawes, the chief govt of the Society of Motor Manufacturers and Traders, stated in a press release.
“Canada is an important market for UK car exports and, given the close ties between our two countries, the suspension of trade talks is especially disappointing and sends a signal that the UK’s world-class automotive products are not welcome in Canada,” he added.
Britain on Thursday suspended talks on a free commerce take care of Canada amid unhappiness on each side in regards to the lack of entry to agricultural markets.
Since leaving the EU in 2020, Britain has been attempting to forge bilateral commerce offers throughout the globe. It is at present negotiating a free commerce settlement with India.