The 2024 changing rules of origin in the UK-EU TCA are unattainable!

Submitted by Tommaso Pardi, CNRS-IDHES, GIS-Gerpisa on Wed, 12/11/2024 - 09:21
in

Publication Type:

Journal Article

Authors:

Alexandra Kuyo

Source:

International Journal of Automotive Technology and Management, Inderscience Publishers, Volume 24, Number 3, p.313 – 334 (2024)

URL:

https://www.scopus.com/inward/record.uri?eid=2-s2.0-85209923989&doi=10.1504%2fIJATM.2024.142578&partnerID=40&md5=924b2fcfc7c92905cff26739be96bf1e

Keywords:

Automotive batteries, Brexit, Cathode active material, Cooperation agreement, Electric utilities, Gigafactory, Originating material, Rule of origin, Trade Agreements, Transition period

Abstract:

The trade and cooperation agreement (TCA) agreed between the EU and the UK on 24 December 2020 intended to avoid reintroducing tariffs for automotive goods. For the trade of electric and electrified vehicles and electric batteries, the TCA introduces a three-phase transition period to enable trade without tariffs, under the specific local content requirements. The first phase of the transition period began on 1 January 2021. As of 1 January 2024, the second phase of the transition will begin and these rules will become more severe. The possible reintroduction of tariffs in the second phase of the transition would be significantly costly for both the UK and the EU and could also hinder electrification in these territories. The currently unadvanced developments in the upstream value chain in electrification and the real concern of industrial players regarding the coming change of rules of origin suggest that these rules are unattainable as of 1 January 2024. Copyright © 2024 Inderscience Enterprises Ltd.

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