UK must master the art of the deal

MANY thousands of people in the automotive industry will look to the future with anxiety and ask how the sector will fare as the country speeds towards Brexit.

There is deep concern about the future of 1,160 jobs at the Ford plant in Bridgend, and workers in north Wales employed at the Vauxhall factory in Cheshire will wonder what will happen as a result of the purchase of General Motors’ European unit by the owner of Peugeot and Citroen.

There are concerns that a push to turn GM Europe into a profitmaking enterprise could lead to job losses.

Britain’s car industry has been a success story in recent times, a bold example of how a sector that had once seemed dogged by crisis could become one of the UK’s export strengths. Production hit a 17-year high in 2016.

However, investment fell from £2.5bn in 2015 to £1.66bn last year, which commentators linked to nervousness about Brexit.

Prime Minister Theresa May has been criticised for pursuing a “hard” Brexit but in her otherwise bullish Lancaster House speech she said the Government may try to keep existing single market arrangements in place for “the export of cars and lorries”.

When Remain campaigners warned of disaster for industries that depend on single market access if the country voted for Brexit, automotive manufacturing is the type of sector they had in mind. Conversely, Brexit supporters were adamant that car sales to the UK are so important for European manufacturers that it would be a self-destructive move to slap on tariffs.

Many people on both sides of the argument – and thousands of workers in car plants and component factories – will agree that tumbling out of the EU without a preferential deal and having to rely on World Trade Organisation rules would be a devastating blow for the viability of the industry.

This shows the gravity of what is at stake. Abstract questions about sovereignty shaped much of the EU debate but we are entering a twoyear process in which negotiations between the UK and the 27 remaining EU members will have a decisive impact on the livelihoods of workers and the life chances of their families.

Negotiating the best deal will require the finest diplomatic skills, a vigilant analysis of risks, and hard-headed pragmatism. There have been concerns that Whitehall lacks experience in striking trade deals but the importance of the task ahead should focus minds across Government departments.

This is yet another reason why devolved nations and the English regions need a strong influence on the UK negotiating stance. Outside the M25 there is no doubt about the level of damage a bad trade deal could do to the manufacturing sector.

The present anxiety must not blind us to the brilliance of the skills in this sector. Our motor industry is a national strength which should not be talked down.

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