UK cars could face some tariffs to EU due to parts ruling

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The United Kingdom has so far failed to persuade the European Union to accept car parts from Japan and Turkey as British when they are used in Britain, meaning some automotive exports would attract tariffs even with a trade deal, the BBC said.

The BBC said it had seen a letter from Britain’s chief Brexit negotiator David Frost to the car industry which said the UK had so far failed to get the car parts deal it wants and “obviously cannot insist on it”.

Having enough parts sourced within the UK and EU is key to a free trade deal.

In a letter to the car industry, seen by the BBC, chief negotiator Lord Frost says one of their key priorities – that parts and components from Japan and Turkey count as British in any deal – has been rejected by the European Commission.

This risks some UK automotive production attracting taxes on trade, known as tariffs, when exported to the EU, even if there is a “zero tariff” trade deal struck with the EU.

Read more via BBC

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