BLOG, while we await the full detail:
A political win with an upfront economic cost, not now compounded by tariffs... but the PM is about to find out precisely what a “non-tariff barrier” is, both within Europe, and within the UK:
bbc.co.uk/news/business-…
A political win with an upfront economic cost, not now compounded by tariffs... but the PM is about to find out precisely what a “non-tariff barrier” is, both within Europe, and within the UK:
bbc.co.uk/news/business-…
Some rules of origin detail now emerging...
EU to implement six year phase in of requirement for electric cars to have a maximum of 45% content from outside Europe. will go 60%-55%-45%.
UK wanted 70%. EU carmakers backed.
Compromise, but could be tight for some manufacturers..
EU to implement six year phase in of requirement for electric cars to have a maximum of 45% content from outside Europe. will go 60%-55%-45%.
UK wanted 70%. EU carmakers backed.
Compromise, but could be tight for some manufacturers..
That is to say, if battery production is not in Europe (rather than Asia) or expensive hybrid systems shipped from Japan... there might be a challenge to qualify for tariff free export... we dont have the numbers on %age local content because never been required before now...
Good question - outside UK + EU, as bilateral cumulation allowed. Ie, the UK car industry incentivised to use European battery gigafactories, and potentially vice versa... BUT ...
https://twitter.com/rpshah_econ/status/1342237309777944576?s=21
However car industry sources tell me battery rules of origin, relevant for establishment of gigafactory in UK/ net zero etc were much closer to the EU proposal of maximum 30-35% than UK ask of 75% maximum non originating material... though with UK ask of 5 yr review won...
There’s all sorts of crazy stuff about changing tariff headings going on in that space, so important to see the text. So far it looks like most UK production of EVs ok, but not if everything is being shipped from China/ Korea/ Japan. Battery factories tricky.
Relevance is fight for future of car industry & who is at front of queue for next cycle of investment, in hugely automated factories building EVs/massive battery gigafactories - Frost & co were trying here at last minute, but some access pressure always inevitable from leaving SM
Anyway with that - have a nice Christmas - see you on the other side with actual text.
Especially to all the health/care workers working in such trying conditions.
And to all the people on their own today.
And to the many people who lost some one prematurely this year...
Especially to all the health/care workers working in such trying conditions.
And to all the people on their own today.
And to the many people who lost some one prematurely this year...
I would if I were Johnson actually have a cheeky go at trying to persuade @elonmusk to abandon Berlin which is facing some local protests, and come to UK. Ultimate test of the RoO negotiation. And he looked and said no last year.
Maybe Northern Ireland?
Maybe Northern Ireland?
https://twitter.com/sw10chelsea/status/1342243597693964288?s=21
that boat seems missed actually, judging by progress on site. There are protests there though. Tesla were shown round sites in Manchester last year. Perhaps an example of why even risk of No Deal tariffs had impact. Maybe different equation with FTA now bloomberg.com/news/articles/…
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