Saturday, December 2, 2023

UK-EU meeting to discuss EV tariffs after Brexit

A meeting between British and European Union officials is scheduled to discuss the imposition of tariffs on electric vehicles (EV) from the United Kingdom after Brexit. This meeting comes as the deadline approaches to decide whether to implement tariffs. The main point of contention is the rules of origin for EVs, which form part of the post-Brexit Trade and Cooperation Agreement between the UK and the EU.

Under these rules, if less than 45 percent of the value of an EV comes from the UK or EU, it may be subject to a 10 percent tariff from next year. This has become a significant issue in the ongoing relationship between the two parties. UK Industry Minister Nus Ghani is hopeful that a favorable decision will be made before the deadline.

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The focus on electric cars has fueled global trade tensions in recent weeks. The UK hopes that the EU will delay the implementation of tariffs, especially since the EU has launched a review of the impact of Chinese car imports on its market. British Prime Minister Rishi Sunak and European carmakers advocated for a three-year extension of the implementation period to allow proper development of the region’s battery supply chain. German Chancellor Olaf Scholz was recruited by Sunak to support the cause.

Unfortunately, EU officials and member states are divided on the issue, as seen in a recent discussion on Monday. The auto industry has expressed concern that the tariffs could cost the sector an estimated 4.3 billion euros ($4.6 billion) and give an advantage to Chinese competitors. Even Stellantis, a major car manufacturer, has warned that its British Vauxhall plants will have to close, resulting in the loss of thousands of jobs, if the Brexit deal is not renegotiated.

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In conclusion, the issue of EV tariffs between the UK and the EU remains unresolved. The outcome of the meeting between the officials will determine whether these tariffs are delayed or implemented, which will affect the auto industry and its supply chain.

Nation World News Desk
Nation World News Desk
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