France has decided to support the inclusion of the United Kingdom in the European Union’s proposed “Made in Europe” industrial legislation, contingent upon the UK aligning with the EU’s trade measures, including tariffs on Chinese electric vehicles. This development marks a significant shift in France’s position, potentially paving the way for closer UK-EU industrial cooperation.
The legislation, known as the Industrial Accelerator Act, is a joint initiative by France and Germany aimed at bolstering European manufacturing and shielding domestic industries from foreign competition. If the UK agrees to the terms of this proposal, it would need to adopt EU trade defense measures, including the tariffs set to be introduced in 2024, and align with future trade and investment restrictions concerning third countries. Norway is also considered a potential candidate for inclusion under the proposed framework.
UK officials and industry stakeholders have advocated for the country’s participation, emphasizing that it would safeguard automotive supply chains, manufacturing jobs, and investment. There is concern that being excluded from the scheme could jeopardize billions of pounds in automotive trade.
The UK government has expressed approval of the Franco-German proposal, viewing it as a positive step forward. However, further negotiations within the EU are necessary before reaching a final decision. The outcome will largely depend on whether Britain is willing to adjust its trade policies to meet the EU’s requirements.
This potential inclusion in the Industrial Accelerator Act highlights the ongoing complexities and negotiations surrounding post-Brexit trade relationships between the UK and the EU. As discussions progress, the focus will remain on how these measures can benefit both the UK and the broader European automotive sector.