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

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  • Alexandra Kuyo

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.

Suggested Citation

  • Alexandra Kuyo, 2024. "The 2024 changing rules of origin in the UK-EU TCA are unattainable!," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 24(3), pages 313-334.
    • Handle: RePEc:ids:ijatma:v:24:y:2024:i:3:p:313-334
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