France hinders trade agreement to impede UK exports

author: FutureCar Staff    

France has taken the lead in trying to hinder British exports by planning to block the UK's request for an extension on a free trade deal for electric cars. The British Government, supported by carmakers across Europe, is asking the European Commission to postpone the implementation of post-Brexit tariffs on electric vehicles traded between the UK and EU.

However, officials in Paris 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 has sparked a European battle, as the French aim to create a European battery industry and prevent the French market from being flooded with Chinese batteries.

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

In other news, a top economist argues against Brexit critics, highlighting Britain's thriving economy compared to a struggling Germany. Nigel Farage criticizes the BBC for displaying EU flags at the Proms, calling out those who "hate this country." Brexit Britain is set to become the headquarters for a new firm launched by French motor giant Renault. Von der Leyen also acknowledged the impact of post-Brexit trade rules on the UK car industry and manufacturers in Europe.

The UK Government hopes to delay the implementation of post-Brexit trade rules until 2027. These rules of origin require electric vehicles shipped from Britain to the EU to have 60% of their battery and 45% of their parts sourced from the EU or UK. Electric vehicles that do not meet this requirement will face a 10% trade levy.

It's not just the UK Government that is concerned about the tariff situation. European carmakers could lose €4.3 billion and reduce production by 500,000 electric vehicles. BMW expressed their hope for a successful compromise on this issue, as it affects the entire industry. The European Commission acknowledged that Brexit has changed the trade relationship between the UK and EU.

FutureCar Staff