France has agreed to allow 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, such as tariffs on Chinese electric vehicles. This move marks a shift from France’s previous opposition and opens the door for the UK to be part of the Industrial Accelerator Act, a proposal co-developed by France and Germany aimed at bolstering European manufacturing and shielding domestic industries from foreign competition.
The proposed legislation would enable the UK and other eligible European partners to engage with the initiative, specifically within the automotive sector. To be included, the UK must agree to adopt relevant EU trade defense measures, including tariffs on Chinese electric vehicles set to be enforced in 2024, and adhere to future trade and investment restrictions involving third countries. Norway is another country that could potentially qualify under this framework.
British officials and industry leaders have expressed support for the proposal, emphasizing that participation would safeguard the UK’s automotive supply chains, protect manufacturing jobs, and encourage investment. They warn that exclusion from the scheme could jeopardize billions of pounds in automotive trade.
The UK government has welcomed the Franco-German proposal as a step forward, though it acknowledges that further negotiations within the EU are necessary before reaching a final decision. The outcome will hinge on the UK’s willingness to align its trade policies with the EU’s stipulations.