UK Manufacturing Industry Warns Of A Knockout Blow If The Trade Deal Is Not Secured With The European Union

The trade body for British manufacturers, ‘Make UK’ said that it was severing its growth forecast for the sector in 2021 to 2.7 per cent from 5.1 per cent. This is roughly half the rate of growth it usually sees for the more extensive economy.

Riddhi Adsul

December 15, 2020

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3 min

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The United Kingdom’s manufacturing industry has warned possible ‘knockout blow’ if Britain’s Prime Minister Boris Johnson is not able to secure a trade deal with the European Union. The manufacturing industry demands the deal to be secured before temporary transition arrangements end on December 31, 2020. The trade body for British manufacturers, ‘Make UK’ said that it was severing its growth forecast for the sector in 2021 to 2.7 per cent from 5.1 per cent. This is roughly half the rate of growth it usually sees for the more extensive economy. Read ahead for more details.

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Watch UK manufacturers warning of ‘knockout blow’ from no-deal Brexit

The official data that was reported last week showed that the UK factory output for the month of October was 7.1 per cent and this was below last year’s level. British manufactures will face tariffs on many of their exports to Europe from January 1 without a trade deal as well as regulatory hurdles. Their import business has already been interrupted due to high volumes of traffic at ports.

These imports disturbance is linked to COVID-19 and Brexit-related stockpiling. The carmaker company, Honda decided to suspend operations temporarily last week due to shortages of the motor parts. The trade body for British manufacturers, ‘Make UK’ stated that the members of their body expect output to deteriorate or fall slightly over the coming quarter. However, they should be better than the record drops seen in the previous quarters due to the pandemic, but overall an anaemic picture.

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Make UK’s Chief Executive Stephen Phipson’s official statement:

Combined with the pandemic, many in the industry are feeling like an exhausted boxer in the final round of about, with a ‘no deal’ exit from the EU potentially landing a knockout blow. It is going to be a long haul back, with talk of a ‘V’-shaped recovery nothing more than fanciful.

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