France has withdrawn its opposition to designating the United Kingdom as part of the European industrial framework under the EU’s proposed “Made in Europe” legislation, marking a significant shift in negotiations over the Industrial Accelerator Act. The move came after France aligned with Germany’s longstanding position supporting UK inclusion. The change was formalized in a joint Franco-German proposal that outlines the conditions under which British participation would be permitted.
Under the revised framework, the United Kingdom would be eligible for inclusion in the “Made in Europe” designation for the automotive sector specifically. The proposal references countries that were part of the EU single market as of January 1, 2020, a criterion that applies to the UK during its final year of EU membership. Norway, which maintains single market membership despite not being an EU member state, would similarly qualify for the arrangement. The inclusion would operate on an opt-in basis rather than automatic designation.
The proposed arrangement comes with substantive conditions tied to trade policy alignment. Participating countries would be required to adopt the European preference scheme applicable to the automotive sector and maintain consistency with EU trade defense measures. This includes the tariffs on Chinese electric vehicles that the EU implemented in 2024 and anticipated future trade arrangements, such as quota agreements currently being negotiated with China regarding hybrid vehicle exports. Countries opting into the framework would also need to accept ongoing alignment with EU policies regarding third-country investments and related trade protections.
British officials have expressed support for the proposal despite initial reluctance regarding tariff alignment. Liam Byrne, chair of the UK’s business, innovation, science and trade committee, characterized alignment with EU trade defense measures as an acceptable compromise to preserve British manufacturing. Earlier statements from UK government officials suggesting resistance to tariff coordination have given way to more conciliatory messaging, with a trade minister indicating willingness to coordinate with the EU on automotive sector challenges posed by Chinese competition.
The breakthrough addresses significant concerns within the automotive industry about potential supply chain disruptions. Mercedes-Benz leadership had publicly urged EU decision-makers to permit UK participation, warning that exclusion would constitute a deliberate harm to European manufacturing capacity. Downing Street indicated it viewed the Franco-German proposal favorably, though noted that European-level procedural requirements remained outstanding before final confirmation.
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