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News from Brussels
With around two months to go until the current rules of origin (ROO) in the EU-UK trade and cooperation agreement (TCA) expire, European automotive leaders have stepped up their joint call for a three-year extension to existing rules.
The much-needed extension will act as a bridging mechanism, allowing for sufficient time to develop a battery industry in the EU and a strong EV production base to compete internationally.
The UK is one of the top destinations for EU electric vehicle exports, with more than one in 10 EU car exports to the UK in 2022 being battery-electric.
European auto makers warn that failure to act could cost EU vehicle makers €4.3 bn over the next three years, potentially reducing electric vehicle production by some 480,000 units, equivalent to the output of two average-size auto factories.