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Re: [Updated] The UK’s future relationship with the EU
Quote:
Originally Posted by jonbxx
Joking aside, as the UK is not really a primary manufacturing base (we build, not make) and the way the car industry across Europe works with components moving around all over the place before being assembled in to a car, there are some interesting side issues in whatever upcoming deal extremely relevant to the car industry...
As well as tariffs, rules of origin are a huge deal for that industry. Cumulation is a hell of a subject all of its' own... |
Yup, that's mentioned on page 20 of the link I posted.
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Free trade deals and rules of origin
42. The priority on trade deals for the industry is the rolling over of existing EU trade deals so the UK can continue to enjoy their enhanced trading arrangements. The Government has announced its objective of establishing “continuity arrangements” for these agreements. This is not necessarily a straightforward matter, due to the rules of origin provisions in these and other trade deals. Typically, an EU FTA will require 60 per cent of the content of a product to be locally sourced to be included under the terms of the agreement. Were this provision to be simply rolled over in a UK-South Korea deal, UK manufactured vehicles would not contain sufficient UK content to qualify. At present their typical UK content for rules of origin purposes amounts to no more than 20–25 per cent of the vehicle. Unless the terms of existing FTAs are altered, the UK would not benefit from the tariff-free access that they provide. The Government will therefore need to renegotiate every existing EU FTA and reach agreement on a new threshold for rules of origin, or agree that, for the purposes of the agreement, EU content can count as UK and vice versa.
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