France has agreed 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 bloc’s trade measures, such as tariffs on Chinese electric vehicles. This development comes as part of a proposal spearheaded by France and Germany, aimed at bolstering European manufacturing and safeguarding domestic industries from foreign competition.
The proposed legislation, known as the Industrial Accelerator Act, would permit the UK and other eligible European partners to participate in the scheme, specifically targeting the automotive sector. To be included, the UK would need to adopt relevant EU trade defense measures, including those set to take effect in 2024, and adhere to future restrictions on trade and investment with third countries. Norway is also considered a potential candidate for inclusion under this framework.
British officials and industry leaders have expressed that participation in the scheme is crucial for safeguarding the country’s automotive supply chains, manufacturing jobs, and investments. They argue that being excluded could jeopardize billions of pounds in automotive trade.
The UK government has welcomed the Franco-German initiative as a positive step forward. However, further negotiations within the EU are necessary before a final decision is reached. The outcome will hinge on the UK’s willingness to align its trade policies with the EU’s requirements.