France has dropped its opposition to the UK being included in the European Union’s “Made in Europe” legislation. This change in stance is conditional on the British government aligning with the EU’s position regarding tariffs on Chinese electric vehicles (EVs).
On Thursday, France began backing Germany, which has consistently supported the UK's calls for European designation under the Industrial Accelerator Act. This draft legislation is designed to protect domestic manufacturing from what is described as cheap Chinese competition.
A joint Franco-German paper, seen by the Guardian, proposes that the UK could be included in the “Made in Europe” framework specifically for the automotive sector. The paper states that for this sector, “Made in Europe” should include the EU27 and allow for an opt-in for European partners who were part of the EU single market as of 1 January 2020, provided there is an agreement on full reciprocity.
This opt-in would come with conditions, including alignment on trade defence measures. These measures include tariffs on Chinese EVs imposed by the EU in 2024 and any future trade barriers, such as a quota deal being finalised with China on hybrid car exports. Liam Byrne, chair of the UK’s business, innovation, science and trade committee, stated that aligning with the EU on trade defence measures is a small price to pay to protect British manufacturing.
A Downing Street spokesperson welcomed the development as positive, noting that it is a Franco-German proposal and still subject to a European process. If confirmed, they said it would be good news for the British automotive industry and the jobs and investment it supports.