STRASBOURG, Nov 23 — EU lawmakers urged the European Commission to be “pragmatic” today about a post-Brexit 10-per cent tariff on electric vehicles that are sold to, or imported from, Britain that is due to apply from January.
The appeal, made by co-chair of the European Parliament’s trade committee Bernd Lange, came as the legislature adopted its first review of the EU-UK Trade and Cooperation Agreement (TCA) that governs post-Brexit ties.
“I call on the EU Commission to find pragmatic and sensible solutions otherwise there is a threat of tariffs of 10 per cent on electric cars,” said Lange.
The TCA requires the 10 per cent tariffs to start on January 1 on vehicles that do not have at least 45 per cent UK- or EU-made content in them, and with batteries that are at least 50-60 per cent sourced from each of those territories, under “rules of origin”.
Those thresholds are very difficult to meet under current manufacturing supply lines which rely on Chinese-made battery components.
German, French and British automakers have been lobbying hard to have the tariffs delayed.
But the commission appears intent on applying it as planned.
Commission Vice President Maros Sefcovic said last week that “this is an outcome of a negotiation in which both sides agreed” under the TCA.
“This includes clear terms for rules of origin of cars and other products traded under the terms of the TCA and these rules of origin aim to support the EU strategic objective to develop a strong and resilient battery value chain in the EU,” Sefcovic said.
The European Parliament’s review of post-Brexit ties highlighted problems such as difficulties EU citizens have had trying to enter Britain and the cumbersome visa process some face.
It noted that youth exchange programmes had greatly suffered.
Those consequences, though, were largely predicted as a result of Brexit, which successive British conservative governments interpreted as a mandate to cut down on European immigration.
The parliament’s report said Brussels’ relations with London have improved under current conservative Prime Minister Rishi Sunak and the “Windsor Framework” both sides adopted in March.
That pact eased tensions over trade in and through Northern Ireland, Britain’s territory on the island of Ireland that under the terms of the TCA has EU customs rules applied. — AFP