France has dropped its opposition to the UK being included in the EU\u2019s \u201cMade in Europe\u201d legislation as long as the British government aligns with the bloc\u2019s position over tariffs on Chinese EVs.<\/p>\n
In a breakthrough for Andy Burnham, France on Thursday came round to backing Germany, which has always supported the UK\u2019s calls to be designated European for the purposes of the Industrial Accelerator Act. The legislation, which is in its draft stage, is designed to protect domestic manufacturing from cheap Chinese competition.<\/p>\n
According to a joint Franco-German paper seen by the Guardian, the two countries are now proposing that for the car industry specifically the UK could be included in Made in Europe.<\/p>\n
\u201cFor the automotive sector, \u2018Made in Europe\u2019 should comprise the EU27 and an opt-in to further include European partners who were part of the EU single market as of 01\/01\/2020, subject to an agreement on full reciprocity \u2013 i.e. adopting the European preference scheme relevant to the automotive sector,\u201d it says in a clear reference to the UK, which was still in the single market as an EU member in January 2020.<\/p>\n
It would also include Norway, which is in the single market but not a member of the EU.<\/p>\n
The paper added that the opt-in would come with conditions, including alignment on trade defence measures, which have included tariffs on Chinese EVs imposed by the EU in 2024 and any future trade barriers, such as the quota deal being finalised with China<\/a> on its exports of hybrid cars.<\/p>\n The paper says that \u201cas well as relevant anti-circumvention measures\u201d, these \u201copt-in\u201d countries would have to accept \u201cdynamic alignment on the EU\u2019s conditions related to third countries\u2019 investments and on relevant EU trade defence measures\u201d.<\/p>\n Liam Byrne, the chair of the UK\u2019s business, innovation, science and trade committee, said he believed aligning with the EU on trade defence measures was a small price to pay to save British manufacturing.<\/p>\n \u201cSometimes politics is the least worst choice \u2013 aligning with Europe on trade defence against an over-subsidised China is the way we deliver for all of us,\u201d he said.<\/p>\n \u201cTariffs on these would be a small price to pay for the protection of a European manufacturing industry which safeguards jobs across supply chains in the UK and makes us less prone to coercion from China in the future.\u201d<\/p>\n On Wednesday the head of Mercedes implored EU leaders to let the UK join the package.<\/p>\n