France blocks Brexit deal amendment to hamper British exports
Emmanuel Macron, President of France speaks during a press conference at the European Political Community (EPC) Summit at Mimi Castle in Bulboaca near Chisinau, Moldova
PA
France has been leading the charge to hamper British exports with Emmanuel Macron planning to block the UK’s request to extend a free trade deal on electric cars.
The British Government, which is receiving support from carmakers across Europe, is pleading for the European Commission to delay the implementation of post-Brexit levies on electric vehicles shipped between the UK and EU.
However, officials in Paris is cautious about how maintaining relaxed rules for Britain could lead to Chinese-made good to flood into the continent.
“The British want an extension to the deadline until 2027 to continue flooding the EU market with Chinese batteries and thus become a hub in the process,” a French source told The Telegraph.
An electric car charging
PA“A European battle will now ensue. The French position is to say no to the British because it is a question of sovereignty as we want to create a European battery industry and flooding the French market with Chinese batteries would stop it from happening.”
Carmakers Nissan and BMW, which are very popular with British consumers, remain dependent on Beijing-backed battery parts.
The European Commission could take heed of France’s reservations as President Ursula von der Leyen used her State of the Union speech to promise to clampdown on Chinese imports.
However, Industry Minister Nus Ghani warned Beijing would benefit if the UK and EU cannot reach an agreement.
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Von der Leyen delivered her final SOTEU address of her first term as Commission presidentState of the European UnionShe told the Commons Business and Trade Committee: “There will be impact on not just the UK car industry but also ... manufacturers in Europe as well.”
Rishi Sunak’s Government is hoping to push back the implementation of post-Brexit trade rules until 2027.
The EU’s rules of origin requirement, which will otherwise come into force at the end of the year, will see electric vehicles shipped from Britain to the bloc must have 60 per cent of their battery and 45 per cent of their parts by value sourced from either the EU or UK.
Electric vehicles which do not fit the rule of origin requirement will face a 10 per cent trade levy.
The MINI Electric is unveiled at the MINI factory in Cowley, OxfordshirePAHowever, it is not only the UK Government which has voiced concern about the tariff situation.
European carmakers could lose €4.3billion (£3.69billion) and cut production by some 500,000 electric vehicles.
A BMW spokesman said: “This legislation affects the entire industry and we, like all manufacturers, hope that a successful compromise can be reached as regards this issue.”
A European Commission spokesman responded: “Brexit has changed the trade relationship between the UK and the EU, among other things.
Rishi Sunak's Government is pushing for a delay to the implementation of tariffs
PA“The Trade and Cooperation Agreement is the outcome of a negotiation in which both sides agreed to an overall balance of commitments.
“This includes clear terms for rules of origin for cars and other products traded under the terms of the TCA.
“These rules of origin aim to support the EU’s strategic objective to develop a strong and resilient battery value chain in the EU.”
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