EU automotive industry leaders sounding alarms, emphasizing immediate action needed due to impending deadline for electric vehicle trade regulations between EU and UK.
In the rapidly evolving world of electric vehicles (EVs), the EU finds itself at a critical juncture. With the EU-UK Trade and Cooperation Agreement's rules of origin for EVs set to expire in approximately two months, European automotive leaders have called for a three-year extension.
Last year, the UK was one of the top destinations for EU electric vehicle exports, with more than one in 10 EU car exports to the UK being battery-electric vehicles. This significant figure translates to a reduction equivalent to the output of two average-size auto factories, as per industry estimates.
The extension is intended to serve as a bridge, allowing the EU to develop a battery industry and a strong EV production base. The failure to act could negatively impact the EU's competitive standing in the international EV market and potentially cost EU vehicle makers €4.3 billion over the next three years. This reduction in production is estimated to amount to a loss of 480,000 electric vehicles.
An open letter has been sent to Ursula von der Leyen, President of the European Commission, regarding the extension of rules of origin for batteries in the EU-UK Trade and Cooperation Agreement. However, the author or identity of this letter is not publicly disclosed in the available search results.
For those interested in learning more about the rules of origin and trade flows between the EU and the UK, specifically in vehicles, the European Commission has published a fact sheet: EU-UK Rules of Origin. Similarly, information regarding vehicle trade can be found here: EU-UK Vehicle Trade.
The development of a robust EV production base in the EU is crucial, not just for the European economy, but for the global transition towards sustainable and cleaner transportation. As the EV market continues to grow, it is essential that the EU maintains its competitive edge and secures its position as a key player in this burgeoning industry.
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