In a significant development for post-Brexit relations, France has withdrawn its opposition to the United Kingdom’s participation in the European Union’s forthcoming “Made in Europe” industrial legislation. This change in stance is contingent on the UK aligning with the EU’s trade measures, including the imposition of tariffs on Chinese electric vehicles set to begin in 2024.
The legislation, formally known as the Industrial Accelerator Act, is a joint effort by France and Germany aimed at bolstering European manufacturing and safeguarding domestic industries from external competition. It offers an opportunity for the UK and other European partners, such as Norway, to engage in the initiative, provided they comply with EU trade defense strategies and future trade and investment restrictions involving third countries.
British officials and industry stakeholders have advocated for the inclusion of the UK in this scheme, emphasizing the potential benefits for the country’s automotive supply chains, manufacturing jobs, and investment. They argue that exclusion could jeopardize a substantial portion of the UK’s automotive trade, potentially putting billions of pounds at risk.
The UK government has expressed a positive outlook towards the Franco-German proposal, viewing it as a constructive step forward. However, the decision is not yet final, as it requires further negotiations within the EU. The outcome will largely depend on Britain’s willingness to adjust its trade policies to meet the EU’s conditions.
This potential collaboration marks a critical juncture in UK-EU relations post-Brexit, highlighting the balance between maintaining national trade sovereignty and participating in broader European economic frameworks. The coming negotiations will be pivotal in determining the extent of the UK’s alignment with EU trade measures and its subsequent inclusion in the “Made in Europe” initiative.