France hinders British exports

author: FutureCar Staff    

France has taken the lead in obstructing British exports by planning to reject the UK's request for an extension on a free trade deal for electric cars. The British Government, backed by carmakers across Europe, is urging the European Commission to postpone the implementation of post-Brexit tariffs on electric vehicles transported between the UK and EU. However, French officials are concerned that maintaining relaxed rules for Britain could result in an influx of Chinese-made goods into the continent. A French source stated, "The British want an extension until 2027 to continue flooding the EU market with Chinese batteries and become a hub in the process."

This disagreement is expected to lead to a European battle. France's stance is to reject the British request in order to protect its sovereignty and foster the growth of a European battery industry. Carmakers Nissan and BMW, popular among British consumers, rely on battery parts backed by China. President Ursula von der Leyen's commitment to cracking down on Chinese imports, as expressed in her State of the Union speech, could influence the European Commission's decision. However, the UK's Industry Minister, Nus Ghani, warned that Beijing would benefit if an agreement between the UK and EU cannot be reached.

In other news, a top economist argues against Brexit critics, highlighting Britain's flourishing economy compared to Germany's struggles. Nigel Farage criticizes the BBC for displaying a sea of EU flags at the Proms, accusing them of being unpatriotic. Additionally, Brexit Britain is set to become the headquarters for a new company launched by French motor giant Renault.

Von der Leyen emphasized the impact of Brexit on the UK and European car manufacturers during her final State of the European Union address. The UK Government, led by Rishi Sunak, aims to postpone the implementation of post-Brexit trade rules until 2027. These rules of origin requirements would demand that electric vehicles shipped from Britain to the EU contain 60% of their battery and 45% of their parts sourced from either the EU or UK. Electric vehicles failing to meet these requirements would face a 10% trade levy.

Not only the UK Government, but also European carmakers are concerned about the tariff situation. They could collectively lose €4.3 billion (£3.69 billion) and witness a production decrease of approximately 500,000 electric vehicles. BMW stated, "This legislation affects the entire industry, and we, like all manufacturers, hope that a successful compromise can be reached."

FutureCar Staff