EU rule punishes UK for Brexit – devastating for | Tech News
A new European Union rule set to punish the UK for Brexit might have a devastating affect on UK automotive, in keeping with consultants. The British Chambers of Commerce has warned that new ‘Made in Europe’ rules would have a “chilling effect” on trade, with car firms likely affected.
The EU’s new ‘Made in Europe” proposal will require firms to prioritise European-made goods over those outside the trading bloc. Electric vehicles for public procurement would need to ensure 70% of their components, excluding the battery, are made in Europe.
William Bain, Head of Trade Policy at the BCC explained: “There is a continuing debate between EU members as to how far it should push its Made In Europe agenda. But if a more extreme version is enacted, it would have a chilling effect on cross-border trade and cause chaos for EU-based producers reliant on UK parts and components.
“The UK government is very much alive to this danger and dialogue is on-going, but this issue is not yet on the radar of enough firms, and its seriousness cannot be underestimated.”
The BCC said there are fears that the plans could squeeze British firms out of supply chains and increase costs. Patrick Keating, Head of Government Affairs at Honda Motor Europe, stressed that the move risks limiting global supply chain resilience and reducing consumer choice.
The SMMT said that the EU-UK automotive partnership is valued at €80 billion (£69billion) annually. William has urged British firms to take a proactive approach and call for continued supply integration before the rules are changed.
Mr Bain said: “We would urge British companies to start speaking to their EU customers about this to make the case for continued supply chain integration and find out where they stand.
“The EU remains the UK’s largest export market and 1000’s of our companies are totally built-in into provide chains for the whole lot from automotives and plane to missiles and medical tools.”
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