{"id":40910,"date":"2023-12-07T11:48:33","date_gmt":"2023-12-07T11:48:33","guid":{"rendered":"https:\/\/www.innovationnewsnetwork.com\/?p=40910"},"modified":"2023-12-07T11:48:33","modified_gmt":"2023-12-07T11:48:33","slug":"eu-delays-electric-vehicle-rules-of-origin-tariffs-for-the-uk","status":"publish","type":"post","link":"https:\/\/www.innovationnewsnetwork.com\/eu-delays-electric-vehicle-rules-of-origin-tariffs-for-the-uk\/40910\/","title":{"rendered":"EU delays electric vehicle &#8216;rules of origin&#8217; tariffs for the UK"},"content":{"rendered":"<h2>The European Commission has proposed a one-off extension to the UK&#8217;s electric vehicle rules of origin until 31 December 2026.<\/h2>\n<p>Under the initial rules of origin for electric vehicles and batteries under the <a href=\"https:\/\/commission.europa.eu\/strategy-and-policy\/relations-non-eu-countries\/relations-united-kingdom\/eu-uk-trade-and-cooperation-agreement_en\" target=\"_blank\" rel=\"noopener\">EU-UK Trade and Cooperation Agreement<\/a> (TCA), the UK would face tariffs on imported electric vehicle batteries or battery materials from outside the EU.<\/p>\n<p>This legislation caused significant backlash across the industry, as automakers and the UK Government said the rules would drive up EV prices for consumers.<\/p>\n<p>Postponing the rules of origin until the end of 2026 will enable the UK&#8217;s industry to mature and catch up to the growing demand for EVs.<\/p>\n<p>The proposal will not affect the TCA&#8217;s wider rules of origin that come into effect from 2027. The proposal also includes a clause rendering it legally impossible for the EU-UK Partnership Council to extend this period further.<\/p>\n<h3>What are rules of origin?<\/h3>\n<p>The TCA outlines rules governing trade between the European Union and the UK.<\/p>\n<p>Established in 2020, rules of origin for electric vehicles were designed to accelerate investment in the EU&#8217;s battery manufacturing industry.<\/p>\n<p>However, unforeseen circumstances have disrupted vital supply chains, such as the COVID-19 pandemic and the war in Ukraine, which have meant the scaling up of the European battery ecosystem has been slower than expected.<\/p>\n<p>Because of this disruption, the UK and industry called for a delay to the rules of origin, as they would significantly impact the sector in its current state.<\/p>\n<p>The rules of origin would impose a 10% tariff on exported EU-built electric vehicles to the UK.<\/p>\n<p>It is estimated this would cost the industry \u20ac4.3bn over the next three years and could reduce EV production by 480,000 units.<\/p>\n<p>Extending these rules will enable the EU-UK battery ecosystem to rebound from supply chain issues and ramp up EV production.<\/p>\n<h3>EV industry reaction to the delay<\/h3>\n<p>The proposal will now be discussed by the European Council, where it will be voted on by 27 Member States.<\/p>\n<p>The automotive industry has welcomed the potential three-year postponement and is now urging the Council to approve the motion.<\/p>\n<p>Sigrid de Vries, Director General of the European Automobile Manufacturers&#8217; Association (ACEA), concluded: &#8220;This is vital to ensure the well-being of not only EU BEV manufacturing but also of the whole <a href=\"https:\/\/www.innovationnewsnetwork.com\/european-battery-industry-eba-is-facilitating-a-clean-energy-era\/40684\/\">European battery value chain<\/a>.<\/p>\n<p>&#8220;Failure to approve the proposal would result in reduced competitiveness of our exports. It would also have a negative knock-on impact on demand for European batteries and battery materials, based on lost BEV market share to third-country competitors.<\/p>\n<p>&#8220;Everything should be done to ensure the competitiveness of the mobility sector so that it remains a pillar of prosperity and employment in the European economy long into the future.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The European Commission has proposed a one-off extension to the UK&#8217;s electric vehicle rules of origin until 31 December 2026.<\/p>\n","protected":false},"author":15,"featured_media":40914,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[24425],"tags":[24203,24335],"acf":[],"yoast_head":"\n<title>EU delays electric vehicle &#039;rules of origin&#039; 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