15 Ekim 2025 - OTHER Announcements
The transitional flexibilities applicable to electric vehicle trade under the Trade and Cooperation Agreement signed between the European Union (EU) and the United Kingdom (UK) will expire on January 1, 2027. The new rules of origin that will come into effect on this date pose significant risks. This was highlighted in a report published by the Association of UK Automotive Manufacturers and Traders (SMMT) and widely reported in the EU press.
EU press reports on the subject emphasize that the European Commission is not open to extending existing flexibilities beyond 2027. Currently, imports from third countries like China are necessary because EU and UK production capacity is still insufficient to meet demand. The SMMT warned that the introduction of tariffs would undermine the sector"s carbon emission reduction targets, negatively impact investment, and severely limit market access. In this context, it is emphasized that, rather than extending flexibilities, the EU and the UK should collaborate more closely on industrial and green transformation strategies. It is also stated that the UK"s accession to the Pan-European-Mediterranean (PEM) Convention on Cumulation of Origin is urgent; otherwise, the UK"s exports under the 16 free trade agreements will be at risk.
As is known, within the framework of the Turkey-EU Customs Union, Turkey is obligated to apply the same rules of origin as the EU in the free trade agreement signed with the UK. Therefore, it is considered that the termination of flexibilities for electric vehicles and batteries by 2027 could also have an impact on the sector in Turkey. On the other hand, it is anticipated that the UK"s participation in the Pan-European-Mediterranean Origin Cumulation system will also benefit our country, as it will enable the implementation of the long-demanded cross-cumulation between Turkey, the EU, and the UK, provided that the Regional Convention is adopted and the relevant Origin Protocols are updated.