In a significant shift, France has decided to support 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 measures. This legislation, jointly developed by France and Germany, aims to bolster European manufacturing and safeguard domestic industries against foreign competition, particularly in the automotive sector.
The proposed framework, known as the Industrial Accelerator Act, would allow the UK, along with other eligible European partners, to partake in the initiative. However, participation requires the UK to adopt relevant EU trade defense measures, including tariffs on Chinese electric vehicles set to be introduced in 2024. Additionally, the UK must align with future restrictions on trade and investment involving third countries. Norway is also a potential candidate for inclusion under this framework.
British officials and industry leaders have advocated for the UK’s inclusion, arguing that it would protect the country’s automotive supply chains, preserve manufacturing jobs, and attract investment. They warn that exclusion from the scheme could jeopardize billions of pounds in automotive trade.
The UK government has expressed optimism about the Franco-German proposal, describing it as a positive development. However, further negotiations within the EU are necessary before reaching a final decision. The outcome will hinge, in part, on whether Britain agrees to align its trade policies with those of the EU.