LONDON (Reuters) - Britain's car industry welcomed government plans for a interim customs union agreement with the European Union after Brexit but said the sector also needed to retain full participation in the single market to give firms certainty.
Britain's major carmakers, all of whom are foreign-owned, have warned over the last year that any tariffs on exports or imports or a loss of the frictionless trade with their biggest overseas market could damage the viability of their plants.
On Tuesday, Britain outlined plans for a future customs agreement with the European Union and an interim deal to ease companies' Brexit concerns.
"It is encouraging that government recognises the need for interim arrangements which must be in place until the new relationship with our biggest trading partner is implemented," the Chief Executive of the Society of Motor Manufacturers and Traders Mike Hawes said.
"However, to maintain frictionless trade and ensure business only has to adjust to one change, interim arrangements must retain membership of a customs union with the EU and full participation in the single market."
(Reporting by Andy Bruce and Costas Pitas)