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I understand that, but why is it conditional on anything? Why should the proportion of non-EU components matter?
by brutusborn 3y ago
I understand that, but why is it conditional on anything? Why should the proportion of non-EU components matter?
- stetrain 3y agoBecause if your goal is to allow free trade between allies (EU and UK, but not China) and a manufacturer sets up a shed in the EU, brings in a car 99% built in China and adds one bolt to it and tries to sell it in the UK as EU-made, then it is circumventing the goal of the free trade agreement.
- brutusborn 3y agoBut in that case, wouldn’t you just focus the tariffs on the 99% Chinese import? Once it is in your trading/ally bloc, wouldn’t it be better for the transactions to be tariff free?
- stetrain 3y agoIdeally, probably. But this was a negotiation between the EU and UK and presumably didn't touch rules on other EU imports. There are other political discussions happening about tariffs on EV imports from China to the EU which might address that as well.