France has lifted its opposition to the United Kingdom’s participation in the European Union’s proposed “Made in Europe” industrial legislation, contingent on the UK aligning with the EU’s trade policies, including tariffs on Chinese electric vehicles. This proposal, a joint effort by France and Germany, aims to bolster European manufacturing and shield domestic industries from foreign competition through the Industrial Accelerator Act.
The legislation is designed to allow the UK and other European partners to participate in the automotive sector scheme. However, participation requires the UK to adopt EU trade defence measures, such as the tariffs on Chinese electric vehicles set to be introduced in 2024, and to conform to future trade and investment restrictions with third countries. Norway could also be eligible under this framework.
UK officials and industry leaders have advocated for the country’s inclusion, arguing that it would safeguard automotive supply chains, manufacturing jobs, and investments. They warn that exclusion could jeopardize billions of pounds in automotive trade.
The UK government has expressed support for the Franco-German proposal, viewing it as a positive step forward. However, further negotiations within the EU are necessary before a final decision is reached. The outcome will partly hinge on the UK’s willingness to align its trade policies with the EU’s requirements.