The UK automotive sector, a cornerstone of the national economy, relies heavily on frictionless trade with the European Union, which remains its single largest export market. The end of the Brexit transition period in 2021 introduced the UK-EU Trade and Cooperation Agreement (TCA), a deal that, while avoiding an immediate collapse into World Trade Organization (WTO) tariffs, created substantial trade friction. This article details how the TCA, particularly its complex Rules of Origin (ROO) provisions, has raised costs, increased administrative burdens, and now poses an existential threat to the long-term viability of UK car production.

The Pre-Brexit Model: Just-in-Time & Deep Integration

Prior to 2021, the UK’s relationship with the EU Single Market was characterized by deep component integration. Automotive supply chains spanned the continent, with parts—often sourced multiple times—crossing borders tariff-free and without complex customs checks. This system allowed UK manufacturing plants to operate a highly efficient Just-in-Time … Continue reading >>>