‘Good news’ for UK manufacturing
A deal between Germany and France was struck on Friday on car emissions, which will see additional compensation measures introduced to help the European automotive industry.
Notably, it addresses the Made in Europe scheme. The proposed compromise moves away from an EU-only approach favoured by France, to one that covers the EU 27 as well as other European countries that were a part of the EU’s internal market on January 1, 2020. This means Britain, which left the bloc at the end of 2020, would be included.
A No 10 spokeswoman has called the reported deal “good news for the British automotive industry”. This comes after talks of closer UK-EU ties, as well as Andy Burnham’s visit to Berlin earlier this month. The development represents a major win for Burnham’s government, safeguarding vital British manufacturing jobs. Should the UK be locked out, it would mean billions of pounds of trade lost.
Conditional Inclusion
According to the Franco-German proposal, the opt-in would come with conditions to be met. These would mainly be in the form of dynamic alignment on trade defence measures vis-à-vis third countries, including the tariffs imposed by the bloc on Chinese EVs in 2024.
The UK government has repeatedly refused to impose similar tariffs on Chinese EVs, despite pressure. The UK currently applies import duties of just 10% on Chinese EVs, compared to the EU’s 45%.
It appears the mood has shifted, with trade minister Anas Sarwar ready to “work together” to deal with China’s dominance in the car sector.
The inclusion of the UK’s the automobile sector could see other industries incorporated down the line. With the government looking to boost the economy, Burnham should seize the olive branch and give British industry a much-needed lifeline.
