Eurocrats could climb down over Brussels red tape on car-makers in a boost for UK firms, it emerged today, raising fresh questions about what Sir Keir Starmer has ‘surrendered’ in return.
France’s Shift in Stance
France has been militantly pushing for British car-makers to be banned from qualifying for new ‘Made in Europe’ regulations. This would put UK firms at a competitive disadvantage, potentially hitting jobs and growth, because it would mean car models made here not being eligible for consumer subsidies in countries where they’re sold. But France’s trade minister has signalled a climbdown, saying Paris was urging Eurocrats in Brussels to solve the ‘problem’ of the UK’s exclusion.
Nicolas Forissier told the Financial Times: ‘We will have to clarify this problem. They don’t belong to the EU, but they are very close neighbours. Of course, they’re very much integrated, so how do we solve this? It should be discussed. I think it’s an important issue.’
Brexit Concerns and Labour’s Position
It will raise fresh concerns from Brexiteers over whether Labour has made further concessions to Brussels to secure a deal. Sir Keir Starmer’s government has already committed to following Brussels rules on food and plant standards, electricity and carbon pricing, sparking accusations of a Brexit ‘surrender’ to Eurocrats. UK car-makers have been pushing for ministers to clinch a deal which would allow them to sell vehicles to the bloc as being ‘Made in Europe’ at an eagerly-anticipated UK-EU summit this summer, expected in July.
Both sides are also hoping to finalise agreements on greater freedom of movement for young people, emissions trading and around food standards. It would formally conclude talks opened last May, when Sir Keir first committed to following the bloc’s rules. Sir Keir Starmer’s government has repeatedly said it wants to align Britain more closely with EU rules again in other sectors to make trade more frictionless. But it has sparked accusations that he plans to ‘surrender’ to Brussels because he wants to ‘dynamically align’, which means effectively becoming a rule-taker without a say. Eurocrats have also warned that closer alignment could mean the UK paying as much as £1billion a year into Brussels coffers as the price for access to the bloc’s single market.
Details of the ‘Made in Europe’ Regulations
The ‘Made in Europe’ regulations are part of the bloc’s Industrial Accelerator Act (IAA), which is yet to be passed by the European Parliament and 27 nation members but could come into force later this year or next. Countries including the Netherlands have been pushing for UK inclusion, while German car companies such as BMW are keen to protect their UK operations, including production of their Mini car in Oxfordshire. But France, including its officials in the European Commission, are understood to have been toeing a hard line and insisting only members of the single market should qualify. However, Mr Forissier’s comments signal that a deal could be on the cards.
It came as figures showed the number of vehicles made in the UK so far this year is down 10 per cent compared to the same period last year, from 298,416 to 266,601. Mike Hawes, boss of the Society of Motor Manufacturers and Traders (SMMT) industry body, said: ‘The forthcoming EU-UK Summit must address these issues and deliver solutions that safeguard our mutual competitiveness and growth.’ A government source said: ‘We have always wanted to make sure the IAA, which is designed to protect from China and the US etc, doesn’t harm the UK.’
