The latest report from the Society of Motor Manufacturers and Traders (SMMT) has shown that 153,041 vehicles were produced last month, with 13 per cent more vehicles going for export than in February 2016. The increase more than offset a 7.4 per cent fall in production for the home market.

Global popularity of British cars

Mike Hawes, SMMT chief executive, said, “Today’s figures illustrate the continuing global popularity of British-built vehicles and the export-led nature of the industry.“With eight out of every 10 cars we produce destined for international markets – and half of those for customers in the EU – we must avoid barriers to trade, whether tariff, customs or other regulatory obstacles, at all costs.“To do otherwise would damage our competitiveness and threaten the continued success of UK automotive manufacturing.”But a report from a think-tank, whose publication coincided with release of the SMMT figures, said that fears over the UK leaving the EU without securing a trade deal were “largely imaginary”.The report from Civitas said that countries operating under World Trade Organization (WTO) rules had increased their exports to the EU five times faster than the UK over the past 20 years and that British exports to non-EU countries had been increasing faster since 1993 than those to nations within the bloc.Civitas said, “The growth of goods exports of the UK to 11 long-standing members of the EU over these 43 years are barely distinguishable from those of 14 countries exporting under WTO rules, and they, of course, have not incurred any of the costs of EU membership.”

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Trade agreements “little benefit to Britain”

The analysis found no evidence that single market membership had a positive impact on UK national income and claimed the EU’s international trade agreements had been of little benefit to Britain.The author of the report added, “The evidence shows that the disadvantages of non-membership of the EU and single market have been vastly exaggerated and that the supposed benefits of membership, whether for exports of goods and services, for productivity, for world-wide trade or for employment, are largely imaginary.“The government appears to have decided to leave the single market on the basis that we should return full control of UK laws to the UK but trade data also offers strong support for the decision and provides comfort for those worried about relying on WTO rules if no deal emerges.“The benefits of EU and single market membership have been illusory, while its costs are real, onerous and unacceptable to a majority of the British people.”

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