Brexit's Good News for E-Cars: Tariffs Stay Suspended for More Years
Great news for the German automotive sector! Electric vehicles will continue to bypass Brexit tariffs when trading between the EU and the UK for the next three years. The EU Commission announced this proposal in Brussels on Wednesday, but it's now up to EU member states to approve it by a qualifying majority.
Approval Requirements
To pass, the proposal needs to secure support from at least 15 out of the 27 EU member states and represent at least 65% of the EU's population.
New Customs Rules on the Horizon
Without this extension, new customs rules would have come into effect on January 1, 2024. Electric cars with less than 45% of their value added in the EU or the UK would be subject to a 10% duty, posing challenges for manufacturers who don't meet this quota due to insufficient battery production capacity.
Additional Insights:
- The EU Commission proposal aims to boost e-car production, fostering a green and competitive automotive industry. This move supports EU's goal of reducing carbon emissions and phasing out fossil fuel-powered cars.
Revised Proposal: Keep Brexit Tariffs for E-Cars Suspended
The EU Commission's proposal spells good news for the German automotive sector, particularly in E-car manufacturing. Despite the UK's EU departure, the potential 10% duty for vehicles with less than 45% value added in the EU or UK can be avoided, ensuring the competitive edge of the German automotive industry.
Enrichment Data:
- To learn more about the progress of the EU Commission's proposal, you can:
- Visit the European Commission's official website for any recent updates or press releases.
- Check reputable European news websites like Euronews, Euractiv, or others for the latest information.
- Search for relevant legislative documents on the European Commission website.
- Look for any recent EU Council decisions regarding trade and tariffs.
- Contact your local EU representative or the European Commission's press office for the most recent details.
