EU-made electric vehicles look set to avoid a 10% tariff after the EU tabled a deal that should see current trade terms extended by three years. The initial terms of the Trade Cooperation Agreement relating to EV sales were due to expire on 31 December this year.
The European Commission is working on proposals to ‘cushion’ the impact of the 10% tariff on imports and exports of electric vehicles. The potential move is in response to pressure from carmakers to amend some of the conditions imposed when the UK left the EU in January 2021.
Electric Vehicles made in the EU could soon be subject to a 10% tariff when entering the UK. A temporary exclusion to tariffs, agreed as part of the Brexit deal, is due to end on 31 December 2023, although an alternative deal may yet prevent tariffs being imposed.
In the post-Brexit landscape, the UK has a new relationship with many EU regulations. Many decisions made at an EU level still influence UK regulations or can shape the supply chains of members that have a footprint outside of the UK. Two recent developments are detailed below.
The BVRLA has welcomed today’s confirmation that the Government is pushing ahead with plans to introduce a Zero Emission Vehicle (ZEV) Mandate in January 2024.
The UK government has unveiled the Windsor Framework, providing a new legal and UK constitutional framework for trading goods between Northern Ireland and Great Britain.
The BVRLA has helped to secure much-needed regulatory clarity around the legal status of rental and leasing firms in the vehicle supply chain. Following significant input from the association, the Competition and Markets Authority (CMA) has formally stated that rental and leasing firms can continue to be considered as ‘end users’, a status that was previously unconfirmed following the UK’s exit from the EU.
The Financial Services and Markets Bill was introduced to Parliament last week, delivering the government’s vision for a financial services sector that is globally competitive.
The BVRLA has responded to the Department for Business, Energy & Industrial Strategy (BEIS)’s consultation looking at the Draft Vertical Agreements Block Exemption Order.