Manufacturing costs for new cars could go up by as much as 13 per cent if the UK achieves a tariff-free deal with the European Union post-Brexit, according to a leaked government document obtained by Sky News.
Non-tariff barriers include other forms of trade restrictions and limitations such as possible import quotas, customs and border delays, checks on standardisation of parts and administrative fees that could be introduced on goods imported and exported out of the UK.
More than 1,100 trucks for UK car plants cross into the UK from the EU every day, many without being checked at customs, delivering around £35 million worth of components, according to figures from the Society of Motor Manufacturers and Traders (SMMT).
The plants build around 6,600 cars and 9,800 engines, many of which are shipped back to the EU.
The SMMT’s previous research has also shown that trade tariffs and non-trade barriers could hike average new vehicle prices by £1,500 if the UK were to fall back to World Trade Organisation trading rules.
A Government spokesperson told Sky News: “This document does not represent Government policy and does not consider the outcome we are seeking in the negotiations.”