France has dropped its opposition to the conditional inclusion of Britain’s car industry in the EU’s ‘Made in Europe’ plan, according to The Guardian, backing Germany’s position. The proposal would, however, link UK participation to alignment with parts of EU trade policy, including its stance on tariffs on Chinese electric vehicles.
The newspaper reports that France changed its position on 15 October. That does not mean new rules have been adopted or that London has accepted the conditions. The Industrial Accelerator Act, to which the ‘Made in Europe’ initiative is linked, remains a proposal, and the EU’s decision-making process is not complete.
Participation would depend on reciprocity
The Guardian cites a Franco-German document it has seen. The automotive proposal described in it would allow participation by European partners that were part of the single market on 1 January 2020. That criterion would open the door to the UK’s inclusion.
Participation would require full reciprocity, including the adoption of an appropriate system of preferences for the European automotive sector. The document also envisages alignment with relevant EU trade defence instruments, measures to prevent their circumvention and rules on investment from third countries.
In practice, the newspaper says, this would also mean aligning with the EU’s position on tariffs on Chinese electric cars. Any participation by British manufacturers would therefore come with conditions, requiring decisions from London about its trading relationships with the EU and partners outside the bloc.
London gives the proposal a cautious welcome
A spokesperson for Downing Street, the British prime minister’s office, quoted by The Guardian gave a qualified welcome to the aim of including the UK. However, the spokesperson stressed that the British side had not yet seen the details and that the EU still had a decision-making process to complete.
There is therefore no confirmation at this stage that the British government has accepted the proposed conditions or decided to change tariffs. The opening described applies specifically to the automotive sector, rather than automatically extending to all British industry. No timetable has been given for when the proposed arrangements might take effect.
