The head of Britain’s top business lobby group says the country’s car industry could be wiped out by Brexit.
“There is a risk that the auto industry in the UK faces extinction if there’s no customs union after Brexit,” warned Paul Drechsler, president of the Confederation of British Industry (CBI).
Britain is set to leave the European Union at the end of March 2019, but the UK government has not made clear how trade will be conducted with the country’s biggest export market.
One of the largest outstanding issues is how goods will be treated when they cross the new border.
Britain is currently a member of the European Union’s customs union, which enables its 28 member states to function as a single trading area with no tariffs or border checks. What comes next is unclear.
UK Prime Minister Theresa May has ruled out a future customs union, and is considering alternatives. But the leading proposals have been dismissed by Brussels or rely on new technologies that critics say don’t yet exist.
“If we do not have a customs union, there are sectors of manufacturing society in the UK which risk becoming extinct,” said Drechsler. “That is the reality.”
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SOURCE: CNN, Alanna Petroff