UK and EU to discuss post-Brexit EV tariffs ahead of deadline

BRITISH and European Union officials will meet on Wednesday (Sep 27) to discuss post-Brexit plans to slap a tariff on electric vehicles (EV) from the UK, as a deadline on whether to delay the move nears.

EV rules of origin, which have become a key area of contention in the UK’s ongoing relationship with the EU, are on the agenda for a half-day meeting of the UK-EU Trade Specialised Committee.

Electric vehicles have become a major focal point of global trade tensions in recent weeks. The EU this month launched an investigation of China’s financial support for the EV industry.

Under the post-Brexit Trade and Cooperation Agreement, EVs traded between the UK and the EU from next year will attract a 10 per cent tariff if less than 45 per cent of their value comes from the region.

UK Prime Minister Rishi Sunak and European carmakers want to extend the planned phase-in period by three years, allowing more time for the region’s battery supply chain to develop.

Sunak has enrolled German Chancellor Olaf Scholz to help delay the tariffs, Bloomberg reported in July.

SEE ALSO

European carmakers dial up pressure on post-Brexit EV tariffs

EU officials and member states have been split over the matter. The industry has said the move could cost the sector 4.3 billion euros (S$6.22 billion) and benefit Chinese competitors.

EU diplomats discussed the issue on Monday but remain divided on the matter, a person familiar with the discussion said. BLOOMBERG