LONDON -- Britain's car industry welcomed government plans for a interim customs union agreement with the European Union after Brexit but said the sector also needed to retain full participation in the single market to give firms certainty.
Britain's major carmakers, all of whom are foreign-owned, have warned over the last year that any tariffs on exports or imports or a loss of the friction-less trade with their biggest overseas market could damage the viability of their plants.
On Tuesday, Britain outlined plans for a future customs agreement with the EU and an interim deal to ease companies' Brexit concerns.
"It is encouraging that government recognizes the need for interim arrangements, which must be in place until the new relationship with our biggest trading partner is implemented," said the CEO of the Society of Motor Manufacturers and Traders, Mike Hawes. "However, to maintain friction-less trade and ensure business only has to adjust to one change, interim arrangements must retain membership of a customs union with the EU and full participation in the single market."