b'include from EU Member States. The recentThe 10% CET on cars would be the default EU - Japan Trade Agreement has loweredfor the UK after 31 December 2020. We most EU and Japanese vehicle tariffs tocould then apply that tariff on all EU27 zero. This has had the effect of persuadingcars imported into the UK. So French, Italian some Japanese manufacturers (e.g. Honda)and German cars would all have to pay 10% to relocate Manufacturing from Europe totariffs. It is worth noting that the UK is Japan. This is not a result of Brexit, but ratherGermanys single largest export market for of the trade agreement negotiated betweenmotor vehicles. Japan and the EU which affects the UK even without Brexit.Subsidies The motor industry is suffering worldwide.The EU opposes industrial subsidies as Causes include the government-ledgiving local industries unfair advantage encouragement for diesel and its subsequentover similar sectors in other EU countries.5reversal, the German car manufacturersIn theory, then, the Customs Union has a deceptions on emissions, and the dashdownside for the Labour Party because it for electric cars. The car-buying public aredoes not allow industrial subsidies of the rightly confused and are as a direct resultkind the Labour Party would like (e.g. steel postponing purchases - for reasons entirelysubsidies in Port Talbot). This argument unconnected with Brexit.against the Customs Union has to be used with care as the EU Commission, ever inventive, invoked an exemption procedure in the 1990s to allow major steel subsidies in Germany, Italy and Spain.2.3. Conclusion Continued membership of the existing EUFurthermore, it gives precedence to our Customs Union or of a new EU-centricdeclining trade with the EU at the expense of creation is neither desirable nor beneficial forour greater and expanding trade with the rest the UK. It negates many of Brexits potentialof the world.benefits. 67'