A HONDA boss told MPs that the UK’s trade deal with Japan “settled a lot of nerves” in Japanese firms.

The trade deal was struck last year, with British tariffs on Japanese cars set to be removed by 2026. 

Giving evidence to a Commons select committee on Tuesday, Honda Motor Europe’s senior vice president Ian Howells said, according to reports by City AM: “We welcome very much the Japanese trade agreement which as a Japanese businesses was very welcomed.”

He added: “On the point around confidence, that certainly amongst my peers in Japanese companies was very much welcomed, and probably settled a lot of nerves in terms of their trading prospects in the UK going forward.”

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Ian Howells, second right, at Downing Street in 2018 Picture: PA

Honda’s plant in South Marston will shut in July, with the loss of 3,500 jobs at the factory and hundreds more at other companies in the supply chain. 200 members of staff will stay beyond the July 31 closure date to help with the decommissioning of the plant.

The company will move production to Japan, China and North America, it has been reported. Honda cars will have to be imported into the UK as a result.

Honda has previously said its decision to shut the Swindon plant was not related to Brexit, instead citing changes in the global car market.

The factory was hit by issues surrounding the availability of key parts in the run up to Britain’s departure from the EU at the end of 2020. In December, the plant shut down for a number of days – reportedly due to delays at UK ports.

Giving evidence to MPs this week, Honda’s Ian Howells said there had been some issues since the UK left the EU at the start of the year, but “in overall terms the flow is working”.