The Turkey-United Kingdom Free Trade Agreement Joint Committee decided to extend the transition period regarding the rules of origin for electric vehicles.
Making a statement on this issue, the Automotive Industry Association said the following:: “Turkey and the United Kingdom decided to continue the rules of origin concerning electric vehicle manufacturers and entrepreneurs. In the statement made by the Ministry of Commerce, “The Turkey-United Kingdom Free Trade Agreement Joint Committee has decided to extend the Transition Period for the Rules of Origin of Electric Vehicles. “We have taken a decision to continue the flexible application of the rules of origin for electric batteries and electric vehicles included in the Turkey-United Kingdom Free Trade Agreement (FTA) until 31 December 2026.” With the decision to continue flexible rules of origin, exporters were enabled to continue to benefit from the preferential regime in the FTA for the specified products and were prevented from being subject to a 10 percent Customs Duty.
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Cengiz Eroldu, Chairman of the Board of Directors of the Automotive Manufacturers Association (OSD), which is the umbrella organization of the sector with its 13 members guiding the Turkish automotive industry, made the following evaluation about the decision: “Within the scope of the Turkey-United Kingdom Free Trade Agreement (FTA), there is a The decision to apply the rules of origin flexibly until December 31, 2026 is an important development that we consider extremely positive for our automotive industry.
According to the first calendar determined, stricter rules of origin were to be implemented from the beginning of 2024. Covid-19 and global and regional developments have had a delaying effect on the electric vehicle supply industry reaching these goals. We think that with the new decision announced, our industry and investments in our country will have the opportunity to complete their preparations by 2027 and reach the level that can meet the desired origin rates.
We have been following the issue closely through our contacts with the Ministry of Commerce for about a year. Changing the rules of origin of the Turkey-United Kingdom FTA simultaneously with the EU-United Kingdom FTA is also of critical importance in preventing loss of competition within the scope of the Customs Union with the European Union. “On this occasion, we would like to thank the Ministry of Commerce, which cooperates closely with our industry, conducts negotiations and shows the necessary sensitivity to the issue.”