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Politics, politics, politics (so long and thanks for all the fish)
- Thread starter SpurMeUp
- Start date
SpurMeUp
Les Howe
Or that BMW, VW etc wouldn't bother selling into the UK, which is highly unlikely. Those buying a new BMW or Porsche won't be put off by a few % more (due to tariffs) to the extent that these brands are no longer sold in the UK.
But loads of those leasing a new BMW may well be put off
SpurMeUp
Les Howe
While Boris etc talk up not observing EU regulations, the reality is likely to be different. We will have the same regs for things like cars, air safety etc The question is, will we get a free trade deal in place that stops tariffs on things like cars, lamb, services etc etc?
It will be matched by the willingness of those in the EU to pay those tariffs on Nissan, etc.
Either tariffs matter or they don't, you can't have it both ways to suit the point you're making at the time.
SpurMeUp
Les Howe
Fair point. I think its higher value cars where tariffs won't make such a difference. 100k on a new Porsche for example. But yes I take your point.
It's why they're set at a % - big increase on expensive items, small one on cheap ones.
SpurMeUp
Les Howe
Margins, and competition, are tighter on cheaper cars. Those able to spunk 90k on a car can easily afford 100k if they want it etc.
monkeybarry
Jack Jull
So, the media boycoutting a press briefing.
I don't believe this wasn't a calculated move - see in plain side who is on side and who is not.
I don't believe this wasn't a calculated move - see in plain side who is on side and who is not.
By the same measure, those spending £9k will be able to stretch to £10k - the proportion is the same.
SpurMeUp
Les Howe
When the margin is bigger companies can take some of the hit, and when people are buying at that price point, money is tight. A £1k saving is a big deal and may lead to a different car etc. But yes its complex, so many variables. One thing is for sure, making cars in the UK if there are tariffs won't be attractive.
We'll now see 6 months of posturing. With the UK pretending we're up for no deal. Remember that? I thought it was "done". In this game of chicken, the UK probably has a significant amount more on the line.
What does the selling price have to do with margins?
Nissan make a bigger margin than Aston Martin do.
SpurMeUp
Les Howe
Porsche's margin is hefty. As much as 47%! Far more wiggle room than price-sensitive cars. I doubt Nissan's margin is over or much over 10% (WTO car tariffs).
https://www.motoringresearch.com/car-news/porsche-911-most-profitable-car/
I still don't see that you've demonstrated any link between selling price and margin.
The reason the 911 is so profitable is that it never gets a redesign. It's still the same car with the engine in the wrong place that it was decades ago.
Gilzeantoscore
Justin Edinburgh
So where are all these free trade agreements with nations outside the EU that the Blonde clown shoe said we would benefit from? Australia all sealed up? Canada, New Zealand etc?
inkpenspur
Allan Nielsen
The UK has managed to roll over 20 "continuity" deals, covering 50 countries or territories that we previously had under the existing EU deals....
- Kosovo (trade worth £8m in 2018)
- Jordan (trade worth £448m in 2018)
- Morocco (trade worth £2.5bn in 2018)
- Georgia (trade worth £123m in 2018)
- Southern African nations (trade worth £10.2bn in 2018)
- Tunisia (trade worth £542m in 2018)
- Lebanon (trade worth £762m in 2018)
- South Korea (trade worth £14.8bn in 2018)
- Central America (trade worth £1.1bn in 2018)
- Andean countries (trade worth £3.4bn in 2018)
- Norway and Iceland (trade worth £30.6bn in 2018)
- Caribbean countries (trade worth £3.7bn in 2018)
- Pacific Islands (trade worth £163m in 2018)
- Liechtenstein
- Israel (trade worth £4.2bn in 2018)
- Palestinian Authority (trade worth £41m in 2018)
- Switzerland (trade worth £32.4bn in 2018)
- The Faroe Islands (trade worth £252m in 2018)
- Eastern and Southern Africa (trade worth £2bn in 2018)
- Chile (trade worth £2bn in 2018)
In 2018, the total value of UK trade (goods and services) was £1.3tn. About 11% of this trade came from countries with EU trade agreements.
The 20 trade agreements the UK has reached represent just over 8% of total UK trade. That means the UK has so far rolled over about three-quarters of the EU's trade deals, based on the 2018 trade figures.
inkpenspur
Allan Nielsen
In terms of some of the bigger markets, the UK has already in place the following:
Trade agreement discussions with Japan
The UK and Japan have agreed to negotiate a new bilateral agreement using the existing EU agreement as a base, looking for opportunities to enhance areas of mutual interest.
Mutual recognition agreements. These are key as they reflect everything the UK has in place via the EU agreements and become the building blocks of formal trade agreements.
A mutual recognition agreement (MRA) is one in which countries recognise the results of one another’s conformity assessments.
A conformity assessment is a set of processes that confirm whether a product meets the specified legal requirements. This can include testing, inspection, and certification.
The UK has signed MRAs that replicate the effect of existing EU arrangements. These will take effect at the end of the transition period now the UK has left the EU. The withdrawal agreement allows for the EU’s arrangements to continue to apply to the UK during the transition period.
The UK has signed MRAs with:
MRA coverage in trade agreements
The UK’s trade agreement with Switzerland incorporates elements of the EU-Switzerland MRA.
The UK’s trade agreement with Israel covers conformity assessment of industrial products. This means that existing arrangements with Israel will continue after the transition period.
Trade agreement discussions with Japan
The UK and Japan have agreed to negotiate a new bilateral agreement using the existing EU agreement as a base, looking for opportunities to enhance areas of mutual interest.
Mutual recognition agreements. These are key as they reflect everything the UK has in place via the EU agreements and become the building blocks of formal trade agreements.
A mutual recognition agreement (MRA) is one in which countries recognise the results of one another’s conformity assessments.
A conformity assessment is a set of processes that confirm whether a product meets the specified legal requirements. This can include testing, inspection, and certification.
The UK has signed MRAs that replicate the effect of existing EU arrangements. These will take effect at the end of the transition period now the UK has left the EU. The withdrawal agreement allows for the EU’s arrangements to continue to apply to the UK during the transition period.
The UK has signed MRAs with:
MRA coverage in trade agreements
The UK’s trade agreement with Switzerland incorporates elements of the EU-Switzerland MRA.
The UK’s trade agreement with Israel covers conformity assessment of industrial products. This means that existing arrangements with Israel will continue after the transition period.
SpurMeUp
Les Howe
What do we think will happen if Japan etc ask if the UK will maintain EU standards on say food that is exported to Japan or whether we’ll keep to EU car standards (that they will sell to us)?
We’ve promised to diverge from EU regulations, but for countries like Japan that might present some complications if trying to replicate the EU trade deal.
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The listed trade deals in he previous post cover countries who sell more to us than vice versa so far easier to sign off, bar maybe Switzerland where we might have more equality?
Sitting on my porcelain throne using glory-glory.co.uk mobile app
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We'll produce products to the standards required in the places we're selling them to. It's incredibly simple.
SpurMeUp
Les Howe
Incredibly simple? Japan will want us to follow EU or US regulations on cars, so they don't have to make a bespoke UK model. The UK government say we won't follow any EU regulations. We can't influence the regulations of the EU (or US) as we used to. We are trying to replicate an EU trade agreement with Japan, made with the weight of the EUs 500m consumers who attracted Japan to open up its own market, but we're trying to do it with appx a tenth of the consumers.
You think food producers can cheaply vary qualities of say chicken for various markets and that is simple? Chlorinated chicken for sale in the US and UK (lowering our standards) with farmers allowed to use chicken sheds that are not cleaned of poop for two cycles (!!) so the chickens need to be chlorinated to kill off the bacteria. And for export to Japan, we'll provide EU quality chickens...etc etc etc. Simple is probably not the word I’d use.
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