Title: The 2024 changing rules of origin in the UK-EU TCA are unattainable!

Authors: Alexandra Kuyo

Addresses: Sorbonne Université, 1 Rue Victor Cousin, 75 005 Paris, France; Plateforme de la Filière Automobile (PFA), 2 Rue de Presbourg, 75008 Paris, France

Abstract: The trade and cooperation agreement (TCA) agreed between the EU and the UK on 24 December 2020 intended to avoid reintroducing tariffs for automotive goods. For the trade of electric and electrified vehicles and electric batteries, the TCA introduces a three-phase transition period to enable trade without tariffs, under the specific local content requirements. The first phase of the transition period began on 1 January 2021. As of 1 January 2024, the second phase of the transition will begin and these rules will become more severe. The possible reintroduction of tariffs in the second phase of the transition would be significantly costly for both the UK and the EU and could also hinder electrification in these territories. The currently unadvanced developments in the upstream value chain in electrification and the real concern of industrial players regarding the coming change of rules of origin suggest that these rules are unattainable as of 1 January 2024.

Keywords: Brexit; trade and cooperation agreement; TCA; rules of origin; cathode active materials; CAM; originating material; gigafactory.

DOI: 10.1504/IJATM.2024.142578

International Journal of Automotive Technology and Management, 2024 Vol.24 No.3, pp.313 - 334

Received: 26 Sep 2023
Accepted: 18 Jan 2024
Published online: 09 Nov 2024 *

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