8:12 am, December 6, 2023
The EU is set to announce a three year delay to controversial ‘rules of origin’ requirements, in news that will come as a relief to British carmakers.
The European Commission, which is the EU’s executive body, is expected to recommend the bloc’s members postpone implementing the post-Brexit tariffs on electric cars.
The trade rules are currently slated to come in from January 1 and will see ten per cent tariffs imposed on cars imported between the UK and the EU if at least 45 per cent of their value does not originate in the UK or EU.
However, business news agency Bloomberg reports that the measures will now not come to fruition until 2027, following calls from car makers and the UK Government.
It had been widely anticipated that manufacturers would struggle to meet the threshold due to the fact that battery production in Europe has not increased as quickly as first hoped.
The SMMT has estimated that tariffs could result in an average price rise of £3,400 on EU-manufactured pure battery electric vehicles bought in the UK.
Around half of these types of cars bought by UK buyers are from the EU.
Speaking back in October, SMMT boss Mike Hawes said: ‘UK automotive is a trading powerhouse delivering billions to the British economy, exporting vehicles and parts around the world, creating high value jobs and driving growth nationwide.
‘Our manufacturers have shown incredible resilience amid multiple challenges in recent years, but unnecessary, unworkable and ill-timed rules of origin will only serve to set back the recovery and disincentivise the very vehicles we want to sell.
‘Not only would consumers be out of pocket, but the industrial competitiveness of the UK and continental industries would be undermined.
‘A three-year delay is a simple, common-sense solution which must be agreed urgently.’
EU member states will need to agree with the European Commission’s recommendation if the rules are to be delayed.
Car Dealer has approached the government for comment.
