TOYOTA, NISSAN TO SEEK PAY FROM UK IF BREXIT TALKS FAIL: NIKKEI
Japanese automakers Toyota Motor Corp. and Nissan Motor Co. Ltd. are set to seek reimbursement from Britain if the government fails to agree on an EU trade deal, the Nikkei financial daily reported on Monday.
The automakers are bracing for an additional 10% EU tax on automobile imports from Britain, and are demanding that the government pay for such extra customs costs, the report said, without citing sources. Toyota and NIssan may also relocate its facilities to avoid paying the additional EU tax, compounding UK's economic woes.
British Prime Minister Boris Johnson said on Sunday that he did not particularly wish for a Brexit transition period to end without a new trade deal in place but that Britain could live with such an outcome, Ritsuko Ando wrote for Nikkei.
The European Union (EU) is also suing Johnson and the UK for violating an earlier agreement on trade between the Republic of Ireland, an EU member, and Northern Ireland, which is still a part of the UK. Johnson argued that national interest dictates that UK rescind the deal on customs that he had signed.