+UPDATE+
Boris Johnson's "Japanese gamble" implodes.
Earlier this year UK govt attempted a high-stakes gamble with UK car industry.
Little remarked upon outside the industry at the time - it was an attempt to "do" Brexit & save the jobs of car workers.
He just lost.
A Thread
2/
Absurd as this sounds - the UK govt agreed products - specifically car products - from Japan or South Korea would be stamped “Made in Britain” in a plan to save the UK car industry post Brexit.
Why did he do this?
bmmagazine.co.uk/news/cars-prod…
3/
The point was Nissan & Toyota - key Japanese car makers in UK - were to be safeguarded against Brexit.
He needed to do that as automotive sector worth £18bn to the UK economy & directly employing 168,000 people with hundreds of thousands more in supply, retail & servicing.
4/
Problem is 'rules of origin' demand 55% of value of a good must come from UK or EU to benefit from tariff reductions – because usually the figure is only 44% for a “Made in UK” car.
Johnson tried to convince the Japanese he could win the EU round to his "Japanese gamble".
5/
As confirmed today, Johnson's gamble failed.
Senior car industry figures are complaining the govt could have won a deal that safeguarded Japanese input....but UK prioritised fishing rights & state aid powers instead.
So what happens now?
bbc.com/news/business-…
6/
The Japanese are now faced with a dilemna. They must stump up extra costs of reengineering EU (or UK) made content into UK cars or take a hit in reduced exports to EU through their UK factories.
The probability is that a mix of both will happen.
But one thing is clear....
7/
Boris Johnson gambled with UK car workers' livelihoods for Fish & Dominc Cummings' state aid obsession - and lost.
Now we are reliant on a combination of Japanese & EU decision making to see if the UK car industry survives.
/ends
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