Foreign Trade

Access to foreign markets is essential for companies in the automotive industry. Apart from the US market, growth mostly took place in the markets outside the triad countries in Eastern Europe, Asia, Latin America and other threshold countries with rising levels of motorization.

VDA on the proposal of a Carbon Border Adjustment Mechanism

The President of the European Commission proposed a Carbon Border Adjustment Mechanism at the beginning of her term of office. The purpose is to impose a levy on selected goods from countries with lower CO2 standards. This should also protect the industry within the EU from unequal conditions of competition and avoid "carbon leakage". In addition, in a recent publication on the financing of its recovery plan, the European Commission mentions the border adjustment levy as a possible additional financing instrument (see page 3). Revenues of between 5 and 14 billion euros per year are expected. The EU COM does not specify the nature of the underlying calculations behind this information. The exact form of the proposal for such a levy is still open.

The German Association of the Automotive Industry (VDA) has examined the Commission's proposals and has drawn up the attached initial position paper with the support of CO2 and trade experts from VDA member companies. A main focus lies on the numerous and still open questions in connection with a border adjustment measure. Please note, that in the course of further developments, this positioning can also be further adjusted.

VDA contact persons​

Angela Mans
Head of Foreign Trade
Tel: +49 30 897842-352


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