SammyLeeWasOffside wrote: ↑Wed May 17, 2023 10:22 am
Is that true from cars manufactured in Germany for instance?
Am asking it the rule is universal or only applies to countries outside the EU. I'm just wondering how shifting production to the EU creates a massive benefit in this case.
Vauxhall could presumably buy parts from the EU (so a move saves money on transport/logistics) but they haven't done that to now presumably due to cost. Are they now saying the tariff is now more than that extra cost? There must be a price point where savings on parts from China outweigh the tariff, if they move factory and that happens they are equally screwed.
Presumably they will need to build substantive manufacturing plants (as opposed to just assembly lines) to get round rules of origin. We have a reciprocal agreement so they could do that here and the goods would be classed as EU for rules of origin purposes.
Yes it applies within the EU as far as I can tell.
There will indeed be a price point where paying the tariff is a better choice than manufacturing in the EU.
Everyone needs to build EV manufacturing facilities. Having them in the EU is, from the EU's perspective, a much better option than having them here. They are incentivising that production and also investment by doing this. Whatever reciprocal arrangement we have appears to end in 2024, or there wouldn't be all the noise.
EvilC wrote: ↑Wed May 17, 2023 10:35 am
Yes it applies within the EU as far as I can tell.
There will indeed be a price point where paying the tariff is a better choice than manufacturing in the EU.
Everyone needs to build EV manufacturing facilities. Having them in the EU is, from the EU's perspective, a much better option than having them here. They are incentivising that production and also investment by doing this. Whatever reciprocal arrangement we have appears to end in 2024, or there wouldn't be all the noise.
The Trade and Cooperation Agreement contains provisions allowing the UK and the EU to cumulate origin. This means materials originating from the:
EU (as well as production carried out within the EU on non-originating materials) may be considered as originating in the UK
UK (as well as production carried out within the UK on non-originating materials) may be considered as originating in the EU
Thats not time limited as far as I can see.
I imagine the problem is the plants in, say, Ellesmere port are assembly rather than manufacturing. Presumably this doesn't change the origin enough, if the same rules apply in the EU though it won't change them enough there either. I get the tariff thing but that aside I don't get how a vauxhall assembly plant in france meets the rules any more than one in liverpool. Stuff would still have to actually be manufactured
SammyLeeWasOffside wrote: ↑Wed May 17, 2023 10:49 am
Thats not time limited as far as I can see.
I imagine the problem is the plants in, say, Ellesmere port are assembly rather than manufacturing. Presumably this doesn't change the origin enough, if the same rules apply in the EU though it won't change them enough there either. I get the tariff thing but that aside I don't get how a vauxhall assembly plant in france meets the rules any more than one in liverpool. Stuff would still have to actually be manufactured
Maybe you are right, but the industry seems to think otherwise.
Not a customs expert (we have a team for that) but I think it is as simple as if I have my factory in Germany then I can move the goods anywhere in the EU tariff free and it is only the UK sales which would be caught by the tariff.
For the UK it would be the reverse so local sales fine but any EU sales will be caught. So the rules apply both ways, it is just the balance of sales.
Both suffer though vs say an Asian manufacturer who sources local so cheaper costs so then the tariff doesn't matter as much.
EvilC wrote: ↑Wed May 17, 2023 10:53 am
Maybe you are right, but the industry seems to think otherwise.
Do they actually though or are they after some nissanesque break or other? There is a lot of if/but/maybe in the article. Maybe they are going anyway and need some cover.
TBH this is the sort of thing we should be/have been sticking money into for decades now. In a few years time every EV battery in a car sold in Europe will have to be manufactured in Europe, if we have the reciprocal agreement in place then lets start building some factories. Stop spending all the money on fingers in dams and build some new dams.
SammyLeeWasOffside wrote: ↑Wed May 17, 2023 11:18 am
Do they actually though or are they after some nissanesque break or other? There is a lot of if/but/maybe in the article. Maybe they are going anyway and need some cover.
TBH this is the sort of thing we should be/have been sticking money into for decades now. In a few years time every EV battery in a car sold in Europe will have to be manufactured in Europe, if we have the reciprocal agreement in place then lets start building some factories. Stop spending all the money on fingers in dams and build some new dams.
I don't know.
If you want investment in stuff then try creating a stable environment in which to do business, instead of a **** show.
EvilC wrote: ↑Wed May 17, 2023 8:09 pm
I can't read the article but CITES regulations are global. The company are complaining about DEFRA, who fall outside of the EU's control.
Some of our plants are so rare in the wild, they fall under CITES, which is a worldwide organisation to ensure trade in rare animals and plants is restricted and this rare fauna and flora protected. Everywhere in the world you need an export license to be allowed to trade in these animals/plants. The EU have implemented an extra safeguard, the only trading block to have done so, requiring an import license as well.
Why do I keep seeing stuff online about "Brexit failing"? Brexit has absolutely achieved its goal, which was the further enrichment of Jacob Rees-Mogg.
