France drops opposition to UK inclusion in EU 'Made in Europe' law for cars

Left · 1France has dropped its opposition to the UK being included in the EU's "Made in Europe" legislation, the Guardian reported on 15 October, as long as the British government aligns with the bloc's position on tariffs on Chinese electric vehicles. 1 Mixed · 2France came round to backing Germany, which has always supported the UK's calls to be designated European for the purposes of the Industrial Accelerator Act, a draft law designed to protect domestic manufacturing from cheap Chinese competition. 1 2 Left · 1A joint Franco-German paper seen by the Guardian proposes that, for the car industry, "Made in Europe" should comprise the EU27 plus an opt-in for European partners that were part of the EU single market on 1 January 2020, subject to full reciprocity. This is a clear reference to the UK, and it would also cover Norway. 1

Left · 1The opt-in would carry conditions: dynamic alignment on EU trade defence measures, including the 2024 tariffs on Chinese EVs, any future trade barriers such as the quota deal being finalised with China on hybrid car exports, and relevant anti-circumvention measures and conditions on third-country investment. 1 Mixed · 2Asked about the reports on Friday, a No 10 spokeswoman said the government would "welcome the objective to have the UK included in the Industrial Accelerator Act" and that it would be good news for the British automotive industry and the jobs and investment it supports. Downing Street's statement the previous day said it had yet to see the detail and that this was a Franco-German proposal with "still a European process to run". 2 1 Centre · 1The spokeswoman declined to say whether the UK would align with the EU on tariffs, calling it "premature to speculate" on the terms of any deal, and said the UK has its own trade policy and keeps all tariffs under review. 2

Mixed · 2The UK has so far resisted pressure to impose such tariffs. The Guardian said the business secretary, Jonathan Reynolds, had said this week that the UK would not be coerced into aligning, and the Standard quoted Reynolds, which it calls Trade Secretary, saying tariff decisions would be "based on the UK interest". The Standard added that tariffs could make electric vehicles more expensive and put UK EV targets at risk. 1 2 Mixed · 2Earlier in the week the Prime Minister said the scheme presented "risks to British manufacturing", and trade minister Anas Sarwar told Politico the UK and EU must "work together and act in lockstep" on China's dominance in automotive, which the Guardian read as a hint the UK was minded to align. 2 1 Left · 1Others have lobbied for inclusion. The head of Mercedes-Benz said locking the UK out would be a "deliberate choice" by EU leaders to "hurt" the car industry across the bloc. Bernd Lange, chair of the European Parliament's trade committee, called France's opposition "not rational". Liam Byrne, chair of the UK business and trade committee, called alignment on trade defence "a small price to pay" to protect British manufacturing. 1

Mixed · 2The proposal is not final: the legislation is at draft stage and the EU process is still to run. The Guardian said the UK government has been desperate for inclusion, fearing billions of pounds of car trade could be lost if the UK were locked out of EU supply chains. 1 2