On Thursday 21 December, the Member States’ ambassadors to the European Union (Coreper) approved without amendment the European Commission’s proposal to extend - until the end of 2026 - the current rules of origin for electric vehicles and batteries, agreed at the time of the UK’s exit from the EU (see EUROPE 13308/21).
Such a measure will prevent the entry into force of more stringent rules from 1 January 2024 and the application of a 10% tariff on goods traded between the EU and the UK which do not meet the following requirements: - vehicles at least 45% of which are produced in the UK or the EU; - electric batteries produced at least 50% in the UK or 60% in the EU.
The industry will need to adapt to the more stringent requirements for local production by 2027, with around €3 billion of support being provided under the ‘Innovation Fund’. The decision adopted on Thursday is in fact supplemented by a mechanism guaranteeing that the full rules of origin regime provided for in the EU-UK bilateral trade agreement will apply without fail from that date.
No change will be possible before 2032, the EU Council points out in a press release. (Original version in French by Mathieu Bion)