France has withdrawn its previous objection to the UK’s participation in the European Union’s “Made in Europe” legislation, pending British alignment with EU tariff positions on Chinese electric vehicles. The shift represents alignment with Germany, which had consistently advocated for UK inclusion in the Industrial Accelerator Act, a measure designed to safeguard European manufacturing from low-cost Chinese competition.
According to a joint Franco-German proposal, the UK could be incorporated into the Made in Europe framework specifically for the automotive sector. The proposal designates participation as an opt-in arrangement for European partners that were members of the EU single market as of January 2020, a category encompassing both the UK and Norway. The inclusion would operate under conditions requiring “full reciprocity,” meaning participant nations would need to adopt the European preference scheme applicable to the automotive industry.
Countries accepting the opt-in arrangement would be obligated to maintain alignment on various EU trade defence measures, including existing tariffs on Chinese electric vehicles imposed in 2024 and forthcoming trade arrangements, such as quota agreements being negotiated with China regarding hybrid vehicle exports. The proposal specifies that these conditions extend to anti-circumvention measures and dynamic alignment regarding EU policies on third-country investments and trade defence actions.
UK officials have signaled openness to accepting these conditions. Liam Byrne, chair of the UK’s business, innovation, science and trade committee, characterized alignment on trade defence as a reasonable tradeoff for protecting British automotive manufacturing. Earlier in the week, UK trade minister Anas Sarwar suggested the country should work in coordination with the EU on addressing Chinese dominance in the automotive sector. A Downing Street spokesperson indicated the government viewed the Franco-German proposal positively, though noted the European process remained ongoing.
The development follows weeks of pressure on the UK to adopt EU tariff policies, with business leaders including the head of Mercedes-Benz urging EU officials to permit British participation in the industrial package. European Parliament trade committee chair Bernd Lange characterized UK inclusion as appropriate, describing France’s previous opposition as unjustified.
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