The battery Rules of Origins in the UK-EU TCA : the great delusion?

Type de publication:

Conference Paper

Source:

Gerpisa colloquium, Brussels (2023)

Résumé:

The battery Rules of Origins in the UK-EU TCA : the great delusion?

Brexit has been the great subject of the second half of the 2010s (and early 2020) decade, for both the United Kingdom and the EU. Indeed, after over forty years of embedding into the European economic, regulatory and customs systems, the UK decided to break away from the EU and claim her own sovereignty back.
The current environmental transition played a central role in the defining of the terms which characterised the future relationship between the UK and the EU from an automotive perspective. The environmental objectives set by both parties (being the Green Deal for the EU and the Net Zero Strategy for the United Kingdom), encouraged them to develop an electric vehicle industry on which they would have more control of the value chain. Obliged to trade under a framework installed by an FTA , both parties agreed to establish specific rules regarding the trade of BEVS, hybrids and batteries. A phased out transition period was thus decided for the exportation and importation of these goods. It followed that changes would have to be effective, across territories, from 2021 to 2023, in the provision of battery manufacturing infrastructures. At the moment, one initial gigafactory project has collapsed in the United Kingdom (partly because of government’s failure to provide part of the promised finances), other projects are still in progress. Now approaching the end of the first phase of the transition period, it is clear that neither party will be ready to follow the severed rules of origin of the second phase.
By exploring the question of the current gigafactory projects developed on each territory and the factors impact their feasibility (as well as the causes behind the recent collapse of British), the evolution of the relationship between the industry at European and national levels (through the exchanges of ACEA, SMMT and PFA) with European and national authorities, as well as the other hindrances at international and conjunctural levels (the position of China, the case of the United States, as well the impact of the different crises), this paper will aim to analyse how realistic the projected objectives for the rules of origins defined in the TCA are for the year 2027 and onwards.
Now approaching the end of the first phase of the transition period, it is clear that neither party will be ready to follow the severed rules of origin of the second phase.

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