Supplementary written evidence from the
Society of Motor Manufacturers and Traders (SMMT)
SUPPORTING MANUFACTURING
THROUGH AN
ACTIVE AND
BALANCED TRADE
POLICY
Following the oral evidence I gave at the Business,
Innovation and Skills Committee inquiry on trade and investment
on 18 January, I am writing to outline a number of issues in relation
to recent developments on trade policy. I have written to Edward
Davey MP, the minister responsible for government's trade policy,
to outline concerns the automotive sector has in relation to current
trade issues. The letter is enclosed and I highlight the key points
below. As supplementary evidence to your inquiry, I have enclosed
an annex highlighting UK automotive exports for 2010. I hope you
will find this information useful.
Government is currently engaged with the European
Commission in its negotiations with India on a Free Trade Agreement.
There is a huge trade imbalance in terms of automotive products
with India. Less than 5,000 vehicles from the EU are exported
to India; however India exports around 200,000 cars annually into
Europe. Of the European exports in 2010, a fifth, 1,015 vehicles
exported to India were UK built. India represents a significant
growth market for the UK automotive industry, and the dismantling
of tariff and non-tariff barriers are vital to exploit the growth
potential.
In taking forward its policy to support manufacturing,
rebalance the economy and create export-led growth, opportunities
for sectors such as automotive to export to key growth markets
such as India are central to government's objectives for overall
economic growth. Within its negotiations on such trade agreements,
government's growth strategy should be followed through in each
avenue of policy making, including trade policy. Particular attention
to tariff dismantling on a 'zero-for-zero' basis should be a central
aim for government, as well as a comprehensive analysis of the
non-tariff barriers inhibiting trade.
At a recent meeting with the Department for Business,
Innovation and Skills' Trade Policy Unit, the lack of transparency
in European negotiations was noted. In our view, it is vital that
there is proper scrutiny given to government's analysis and positions
that are sent to Brussels, to ensure that government is striving
for the best possible deal for the UK's growth sectors.
It would be useful to meet with you to outline in
further detail key issues from an automotive sector point of view
on trade policy, and wider issues that are currently on the agenda.
My colleague Jonathan Hawkings will be in touch to make appropriate
arrangements. I look forward to hearing from you soon.
The enclosed data outlines UK automotive exports
in terms of cars and commercial vehicles on a country-by-country
basis (ordered by region) in 2010. Please see a summary of this
data by region below expressed in units. Additional totals for
UK engine production are also outlined:
Cars
Exports to the EU: 588,832 (representing 62% of all
car exports)
Exports to non-EU European countries: 83,051
Exports to the Americas: 119,362
Exports to Africa: 25,255
Exports to the Middle East: 108,915
Exports to Oceania: 17,783
Exports to other: 4624
Total 2010 UK car production:
1,270,444
Total 2010 UK car exports: 947,822 (representing
75% of production)
Commercial Vehicles
Exports to the EU: 78,416 (representing 91% of all
CV exports)
Exports to non-EU European countries: 732
Exports to the Americas: 3,714
Exports to Africa: 363
Exports to Asia: 2,370
Exports to Oceania: 677
Exports to other: 91
Total 2010 UK commercial vehicle production: 123,019
Total 2010 UK commercial vehicle exports: 86,363
(representing 70% of production)
Engines
Total 210 UK engine production: 2,386,717
Total 210 UK engine exports: 1,721,490 (representing
72% of production)
3 March 2011
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