France is reluctant to delay post-Brexit tariffs that could affect electric cars traded between the UK and the EU, according to information leaked from the French government. The move is likely to affect carmakers on both sides of the English Channel.
The post-Brexit trade deal between the EU and the UK requires that by 2024, electric cars must contain 45% of inputs from the EU or Britain. Moreover, the battery cells must meet the 50%-60% requirement. Failure to comply with these rules will result in a 10% import duty being imposed by the UK or EU authorities.
However, there is a big problem. UK and EU car manufacturers have not developed their EV supply chains sufficiently to meet these requirements. Therefore, they asked to postpone these rules until 2027.
However, France is reluctant to agree to such a postponement.
While French carmakers such as Renault and Stellantis are likely to be affected by these tariffs, France’s reluctance stems from its unwillingness to renegotiate the deal between the UK and the EU, which took a long time to finalize, according to French officials involved in the case. . .
The sources, who requested anonymity, noted that “the ink is barely dry,” suggesting that it would not be wise to change the terminology so soon after it is finalized. The official also stated that France is awaiting the European Commission’s assessment in this regard.
Another French official revealed that while German officials are more inclined to delay tariffs, there is still some concern in Berlin. A European Commission spokesman said that while the Brexit deal was the result of negotiations in which both Britain and the EU agreed a “general balance” of commitments, issues raised by either side could be examined by the bodies created by the deal.
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