Inclusion in the EU’s “Made in Europe” scheme would be “good news” for Britain’s car industry, Downing Street has said amid reports of a potential deal for the sector.
Reports suggest France and Germany have put forward a proposal to allow the UK’s automotive industry to be included in the protectionist scheme, known formally as the Industrial Accelerator Act.
But, according to the Guardian, inclusion would be conditional on Britain aligning with the EU’s position on tariffs for Chinese-made electric vehicles.
Asked 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”.
She added: “This would be good news for the British automotive industry and the jobs and investment it supports across the UK.”
But she declined to comment further, saying there was “still a European process to run”.
Earlier this week, the Prime Minister said the Made in Europe scheme presented “risks to British manufacturing” and promised to raise concerns about its impact on UK automotive firms with the bloc.
The scheme is intended to protect clean technology firms and electric vehicle manufacturers from cheap Chinese competition.
The EU has already moved to limit imports of Chinese electric vehicles, including by imposing tariffs, and replicating those levies could be the price of the UK’s inclusion in Made in Europe.
So far, Britain has resisted pressure from Europe to impose such tariffs, with Jonathan Reynolds, the Trade Secretary, saying decisions on tariffs would be “based on the UK interest”.
Imposing tariffs could also put the UK’s electric vehicle targets at risk by making them more expensive for consumers.
Asked whether the UK would be willing to align with the EU on tariffs, the No 10 spokeswoman said it would be “premature to speculate” on the terms of any deal with the bloc.
She added: “But more broadly, on the principle, the UK obviously has its own trade policy and it keeps all tariffs under review. And we work closely with the British automotive sector to make sure that that approach reflects their best interests.”
