Brexit is ushering in new “rules of origin” trade regulations in January 2024, which stipulate that electric vehicles (EVs) must have 45% of their value originating from the EU or UK to evade a 10% trade tariff. The UK automotive industry is increasingly concerned about the impact of these regulations. Manufacturers face problems meeting the threshold since many EV parts including batteries come from Asia, making it harder for them to comply.
The Society of Motor Manufacturers and Traders has called for a three-year delay in implementing the rules, emphasising the potential consequences. They warn the tariffs could substantially increase the cost of UK-built battery-powered electric vehicles in Europe and lead to higher prices for EU-made models sold in the UK.
The UK government and car-makers are calling for changes to the rules. However, the EU so far has understandably shown reluctance to delay them, arguing that to do so could discourage the speedy development of EU-based battery manufacturing and leave the European market exposed to competition from China and elsewhere. Of course, if the UK had stayed in the EU, it wouldn't have faced this tariff threat in the first place.
Brexit is making a fool out of us and of our economy. Re-joining the customs union, single market and the EU as a whole would remove all these problems overnight. If you agree, don't forget to tell your friends about our campaigns. We're getting ready for the general election that's likely to happen next year. If you can, please chip in to our campaign fund by clicking on the link below and do the survey at therejoineuparty.com/take-the-survey
Kind regards,
The Rejoin EU Team
