France has agreed to support the United Kingdom’s participation in the European Union’s “Made in Europe” industrial legislation, on the condition that the UK adopts the bloc’s trade measures, including tariffs on Chinese electric vehicles. This proposal, initiated by France and Germany, seeks to bolster European manufacturing and safeguard domestic industries from foreign competition through the Industrial Accelerator Act.
The proposed arrangement would allow the UK and other eligible European partners to engage in this legislative framework, specifically benefiting the automotive sector. To be included, the UK must align with relevant EU trade defense measures, such as the tariffs on Chinese electric vehicles set to be implemented in 2024, and adhere to potential future restrictions on trade and investment with third countries. Norway is also considered a candidate for this framework.
British officials and industry leaders have advocated for the UK’s inclusion, arguing that it would protect vital automotive supply chains, preserve manufacturing jobs, and secure investment. They warn that exclusion from the scheme could jeopardize billions of pounds in automotive trade.
The UK government has expressed approval of the Franco-German proposal, describing 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 the UK’s willingness to align its trade policies with the EU’s stipulations.