16.The Agreement establishes zero tariffs or quotas on trade between the UK and the EU, where goods meet the relevant rules of origin. The Chapter includes provisions which reaffirm, incorporate and build upon WTO commitments and principles, facilitate trade, and address non-tariff barriers (such as import and export licensing restrictions). It also ensures that trade remedy measures are investigated and applied in a proportionate and transparent manner.
Chapter 2 – Rules of origin
17.The UK and EU have agreed a rules of origin Chapter which contains modern and appropriate rules of origin ensuring that only ‘originating’ goods are able to benefit from the liberalised market access arrangements agreed in the TCA, while reflecting the requirements of UK and EU industry. For example, the RoO we have agreed for batteries and electric vehicles will ensure that UK-made electric vehicles are eligible for preferential tariff rates, supporting our move towards Net Zero.
18.The Chapter also provides for full bilateral cumulation (cumulation of both materials and processing) between the UK and the EU, allowing EU inputs and processing to be counted as UK input in UK products exported to the EU and vice versa. The ambitious arrangements include facilitations on average pricing, accounting segregation for certain products, as well as all materials, and tolerance by value. The rules are also supported by predictable and lowcost administrative arrangements for proving origin.
