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Old 1st August 2020, 15:11   #2591 (permalink)
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Re: Brexit going forward

44% of parts in UK cars come from domestic suppliers


https://www.autocar.co.uk/car-news/i...stic-suppliers
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Old 1st August 2020, 15:21   #2592 (permalink)
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Re: Brexit going forward

Article was written in June 2017, is it still relevant?
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Old 1st August 2020, 17:41   #2593 (permalink)
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Re: Brexit going forward

Quote:
Originally Posted by 429nufc View Post
Article was written in June 2017, is it still relevant?
You could be right 429nufc the 2017 car mag figures may not be relevant Today .... as the figures I posted were originally sourced as recently as 24 June 2020 In what they have called " In-depth research and analysis of key Brexit issues" research papers . I have put the link below The particular research paper is called "Manufacturing and Brexit"

From a Government funded website often cited by the Full Fact website for fact...

So more up to date than some 2017 Car Mag I would think ???


Research paper "Manufacturing and Brexit"
https://ukandeu.ac.uk/research-papers/


“trade agreements usually require about 55% of a good to be produced locally in order to qualify for zero-tariff treatment. Yet only about 20-25% of overall value of cars produced in the U.K. originates domestically, according to.. UK in a Changing Europe”

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Old 1st August 2020, 17:53   #2594 (permalink)
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Re: Brexit going forward

I wasn’t,t replying to your post. I should maybe have quoted ESB but he was the later post

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Old 1st August 2020, 18:25   #2595 (permalink)
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Re: Brexit going forward

Existing EU FTAs require approximately 55% EU content if a finished vehicle is to benefit from the preferential terms of trade with a third country. Were new trade deals signed by the UK to require 55% UK content in a finished vehicle, a significant change in the supply chain would be needed. Vehicles produced in the UK currently contain approximately 44% UK content. This represents a growth in UK content in recent years but is still a long way from the 55% that would be required to enjoy preferential treatment under future trade deals.


SMMT Issue Paper July 2019 - Rules of Origin

https://publications.parliament.uk/p...e-115-backlink

Most automotive manufacturers would welcome 55% content by value as they have seperate in house divisions for engine,powertrain and body panels Original equipment manufacturer
and it would be easy to inflate the costs of those parts to the parent company to meet the 55% content by value rule at the end of the day the money is going back into the same company
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Old 1st August 2020, 21:17   #2596 (permalink)
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Re: Brexit going forward

Please read The Institute for Government Trade: Rules of Origin.... and their example .


After Brexit, will UK goods meet the origin threshold to qualify for preferences?

Typically, for preferential origin, around 50%+ of value has to be added to claim origin............Post-Brexit, what was once European value-added will have to be separated into UK and EU value-added. That will make it harder to reach the threshold to export to the EU without tariffs.

Mike Hawes, Chief Executive of the Society of Motor Manufacturers and Traders, gave one example of the challenges this poses in evidence to the Business, Energy and Industrial Strategy Select Committee. He noted that the average car made in the UK purchases 44% of its components from UK suppliers.

But the proportion of this actually made in the UK “is somewhere between 20% and 25%”, which is a long way from the 55–60% threshold needed to qualify for any FTA. Hawes has pointed out that “To move from where we currently are — let us say 20% to 25% originating content — to 60% will take many years. There is not necessarily the capability here in the UK.”

https://www.instituteforgovernment.o...e-rules-origin

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Old 2nd August 2020, 00:23   #2597 (permalink)
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Re: Brexit going forward

Thanks I will stick with the House of Commons publication

Revealed: the Institute for Government’s Europhile link

This week the Times splashed on a report by the Institute for Government branding Theresa May's Brexit plans 'chaotic and dysfunctional'. The research group claimed that Whitehall is overwhelmed by the size of the task ahead and expressed concerns about its feasibility.

However, while many Bremoaners have leapt on its findings as proof that the government's Brexit approach is shambolic, Mr S suggests they take a close look at the group behind it. With a board composed of the likes of Neil Kinnock's former Chief of Staff at the European Commission, Sir Andrew Cahn, and a range of Labour MPs and peers, it can't be considered the most neutral outlet.

What's more, the Institute for Government received a core grant of £3.5 million from the Gatsby Charitable Foundation for 2016 -17. And just who is behind this foundation? Well, it was established by Lord Sainsbury -- the top Labour donor who Alan Johnson described as having 'really tried to stop Brexit'.


https://www.spectator.co.uk/article/...urophile-links
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Old 2nd August 2020, 01:04   #2598 (permalink)
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Re: Brexit going forward

SMMT
The Society of Motor Manufacturers and Traders (SMMT, the trade association for motor manufacturers and traders) argued in favour of remaining in the EU before the referendum in 2016
.20
Since the referendum SMMT has advocated for as ‘close’ a relationship as possible between the UK and the EU after Brexit. For example, in a position paper published in December 2016, SMMT argued that the government priorities during negotiations with the EU should be:21
1 Securing continued membership of the Single Market
2 Securing continued membership of the Customs Union


SMMT position has always been to remain

Theresa May: ‘No deal is better than a bad deal’

I see the Fremch are now saying French minister says No Deal Brexit is better than a bad deal

https://www.dailymail.co.uk/news/art...-bad-deal.html
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Old 2nd August 2020, 12:15   #2599 (permalink)
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Re: Brexit going forward

Its strange when Brextemists are faced with facts ...like lemmings it seems, they wont believe till the cliff edge ..and still they will follow.

First I posted the fact published in Bloomberg...not believed, understandable Brextremist move, having seen past reaction to Bloomberg reporting by Brexiteers.

So then show the fact of Rules of Origin in reference FTA Rules from one of the Brexit Governments own funded think tank "The UK in a changing Europe" research paper.

No reason given on why this Agency isn't to be believed, especially as it is often cited by the posters own choice for facts "Full Fact " ???


Then I post again from the The Institute for Government Trade: Rules of Origin which actually used the Auto Industry as an example how these rule has to be met.

I seems according Brextremists The Institute for Government is " Europhile link" So bias it seems, that arch Brexiteer Liam Fox was invited to speak ,and spoke at The Institute for Government. Maybe its classed Europhile in doing its job, being critical times a definite no no in Brexit circles it seems .....Even though The Institute for Government is Independent think tank which aims to improve government effectiveness through research and analysis and is meant to be critical when the need arises.

The Institute for Government has been rated as 'highly transparent' in its funding by "Transparify" and has been a given an A grade for funding transparency by "Who Funds You"


So it seems the only accepted publication is a House of Commons publication "Thanks I will stick with the House of Commons publication". Which is strange as it states it comes from an SMMT Issue Paper July 2019 ......which in a Brexiteers last post SMMT is denounced as having a remain position ........ quote ." SMMT position has always been to remain"

So it seems ( cherry picking ) its to be believed, if it seems to fit in with a Brexit narrative. The Brexiterer double standard at play ....

The HC publication states British content is 44% which I and the previous publications and posts DON'T even dispute ...what is disputed, is how it doesn't Qualify for the new situation of leave, the Rules of Origin to qualify for any FTA ....is below.

To get the FTA the component has not only to be supplied by a UK based supplier but has to be produced in the UK as well

....At the moment part of the 44% meets the FTA criteria of both the component being supplied by a UK based supplier and the component produced in the UK,

but also a part of the 44% will not meet the Leave FTA with components being yes supplied by a UK based supplier but comes supplied by a foreign source


Hence the 20% to 25% originating content .

Well he seems only to believe House of Commons publications then maybe you will believe the below .....( though being a Brexitremist won't hold my breath, as that double standard is sure to come into play it not fitting with the Brexit narrative )

The House of Commons Business, Energy and Industrial Strategy Committee three years ago when investigating the implications on the Automotive Industry on the UK leaving the EU ...


Leaving the EU: implications for the automotive industry, HC 379

Giving Oral Evidence was Mike Hawes, Chief Executive, Society for Motor Manufacturers and Traders, Honda Motor Europe; Mark Wilson, Chief Financial Officer Chris Saunders Aston Martin. Dermot Sterne, Chief Executive, Applied Component Technology.

When asked by a select committee Chair and Committee member for evidence on Content

Mike Hawes Oral evidence .... This is where it gets a bit difficult. On average a UK car purchases about 44% of its parts from a UK-based supplier. For the purposes of rules of origin, it is not so much where you purchase that tier one from, but, going upstream, what proportion of that UK componentry actually comes from the UK.

Mike Hawes: The average car made in the UK purchases 44% of its components from UK suppliers, in other words 56% from abroad. For the purposes of free trade agreements, we look at something called originating content.

That means, of that 44% that you are buying from your UK suppliers, how much actually comes from the UK, bearing in mind the supply chain, tier two, will still be buying from Europe, Asia and elsewhere.

We are doing some work on that figure at the moment, and it is somewhere between 20% and 25%, which is a long way from the 55% to 60% threshold you would need to qualify for any free trade agreement.

Mike Hawes: To move from where we currently are—let us say 20% to 25% originating content—to 60% will take many years. There is not necessarily the capability here in the UK.

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Old 2nd August 2020, 12:54   #2600 (permalink)
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Re: Brexit going forward

Thank goodness UK is out.

Ian
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