France hinders trade agreement, impacting UK exports

author: FutureCar Staff    

France has taken the lead in attempting to hinder British exports by planning to reject the UK's request to extend a free trade deal on electric cars. The British Government, supported by carmakers across Europe, is urging the European Commission to postpone the introduction of post-Brexit levies on electric vehicles transported between the UK and EU.

However, officials in Paris are cautious about maintaining relaxed regulations for Britain, as they fear it 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." The source added that France aims to create a European battery industry and allowing Chinese batteries to flood the French market would hinder this goal.

The battle between the UK and Europe is expected to intensify. Carmakers Nissan and BMW, popular among British consumers, currently rely on battery parts backed by China. President Ursula von der Leyen's recent State of the Union speech emphasized the need to crack down on Chinese imports, which may influence the European Commission's decision. However, Industry Minister Nus Ghani warned that Beijing would benefit if the UK and EU fail to reach an agreement.

In the latest developments, a top economist defends Brexit and highlights Britain's thriving economy compared to Germany's struggles. Nigel Farage criticizes the BBC for displaying EU flags at the Proms, calling out those who "hate this country." Additionally, Brexit Britain is set to become the headquarters for a new company launched by French motor giant Renault. Von der Leyen acknowledged the impact of post-Brexit trade rules on both the UK and European car manufacturers.

The UK Government is seeking a delay in implementing post-Brexit trade rules until 2027. These rules include the EU's requirement for electric vehicles shipped from the UK to the EU to have 60% of their battery and 45% of their parts sourced from either the EU or UK. Electric vehicles that do not meet this requirement will face a 10% trade levy.

However, concerns about the tariff situation are not limited to the UK Government. European carmakers could face a loss of €4.3 billion (£3.69 billion) and a reduction in production of around 500,000 electric vehicles. BMW expressed their hope for a successful compromise, stating that this legislation affects the entire industry. The European Commission acknowledged that Brexit has changed the trade relationship between the UK and EU.

FutureCar Staff