Brexit: Japan’s biggest automakers to demand compensation after EU tariff threat | UK | News

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UK chief Brexit negotiator Lord David Frost has informed UK auto executives that the EU can now impose taxes on parts imported from Japan and Turkey. Despite being used in British-made cars, Brussels has said tariffs will be applied to parts even if an agreement is reached between the two parties. In this case, Nissan and Toyota have asked the UK to reimburse the two companies for any additional taxes imposed on their parts.

Both companies reportedly want the payments to cover the additional 10% tax, according to a Japanese publication, Nikkei Asia.Neither company has confirmed the report, although Nissan has urged both sides to reach a deal.

A Nissan spokesperson said: “We urge UK and EU negotiators to work together for an orderly and balanced Brexit that will continue to encourage mutually beneficial trade.”

Both companies have factories in Derbyshire and Sunderland.

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Coronavirus: Nissan employs nearly 7,000 people in Sunderland (Image: PA)

Nissan’s Sunderland plant received special attention as it supplies nearly 7,000 employees in the region.

However, the company has warned that the plant may not be sustainable if new tariffs are applied to vehicles.

COO Ashwani Gupta told the BBC the company may need to reconsider its future if additional tariffs are imposed.

He added: “You know we are the number one car maker in the UK and we want to keep going. We are determined.

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Brexit news: companies warned of new tariffs

Brexit news: companies warn of new tariffs (Image: PA)

“Having said that, if we don’t get the current rates, that’s not our intention, but the business will not be sustainable.

“That’s what everyone needs to understand.”

In his letter, Lord Frost raises the question of the rule of origin of goods.

The threshold for parts is leveled at 55 percent, which means that the majority of what has been used must come from the country from which it is exported.

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Brexit: The company has not confirmed the report

Brexit: The company did not confirm the report (Image: PA)

Brexit News: Lord David Frost

Brexit News: Lord David Frost (Image: PA)

In his letter, Lord Frost said: “I am sorry to say that so far EU negotiators have not been willing to discuss this or share any proposed text with us.

“The Commission has made it clear that it will not accept cumulation with third countries under any circumstances, which we regret, but which we obviously cannot insist on. ”

The last round of formal Brexit negotiations concluded last week between Michel Barnier and Lord Frost.

Boris Johnson and European Commission President Ursula von der Leyen also held talks on Saturday to discuss the progress of negotiations.

Brexit negotiations

Brexit negotiations (Image: Express)

Mr Johnson has set the EU summit for October 15 as the deadline for a deal.

Mainland officials have indicated the end of the month as a more plausible period.

After the talks last week, Barnier met with German Chancellor Angela Merkel to discuss the issues.

Brexit news: Michel Barnier

Brexit news: Michel Barnier (Image: PA)

German Foreign Minister Heiko Mass also attended the meeting and warned the UK against a no-deal Brexit.

He said: “Our door remains open for a close and ambitious partnership with Great Britain.

“This is and will remain our goal.”



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