Motor Vehicles: Manufacturing Industries

(asked on 17th May 2023) - View Source

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what steps her Department is taking to secure a positive outcome on Rules of Origin for automotive companies.


Answered by
Nusrat Ghani Portrait
Nusrat Ghani
Minister of State (Minister for Europe)
This question was answered on 30th May 2023

The UK is negotiating new Free Trade Agreements with modern Rules of Origin that support market access, enabling our industries to benefit from global trade opportunities.

On Trade and Cooperation Agreement (TCA) Rules of Origin, raw material costs for automakers have spiked due to the war in Ukraine, Covid pandemic and energy crisis since we signed the TCA. This is making it harder for UK and EU manufacturers to meet the 2024 transitional rules for electric vehicles, meaning they could face 10% tariffs. We want to work with the EU to fix this specific problem, and UK Ministers and officials are engaging with EU counterparts.

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