Downing Street welcomes the idea of the UK car industry being included in the EU’s Industrial Accelerator Act
Joining the EU’s “Made in Europe” scheme would be “great news” for the UK car industry, Downing Street has said, amid reports of a potential deal for the sector.
France and Germany are said to be drawing up proposals that would allow Britain’s automotive sector to be included in a protectionist scheme, officially known as the Industrial Accelerator Act.
However, according to the Guardian, any such inclusion will depend on the UK aligning itself with the EU’s stance on tariffs on electric vehicles produced in China.
When pressed on the report on Friday, a Number 10 spokesman said the Government would “accept the objective of having the UK included in the Industrial Acceleration Act”.
He went on to say: “This will be great news for the UK automotive industry and the jobs and investment it supports in the UK.”
He declined to elaborate, but said “there are still European processes to follow”.
Earlier this week, the Prime Minister warned that the Made in Europe scheme posed “risks to British manufacturing” and vowed to raise concerns about the potential impact on British automotive companies by the bloc.
The scheme is designed to protect clean technology companies and electric vehicle manufacturers from low-cost Chinese competition. The EU has taken steps to limit the import of Chinese electric vehicles, including through the imposition of tariffs, and adopting the same levy can also be the price to secure the UK’s place in the Made in Europe framework.
The UK has so far stood firm against European pressure to introduce the tariffs, with Trade Secretary Jonathan Reynolds stating that any decision on the matter would be “based on the interests of the UK”. Introducing tariffs could also jeopardize the UK’s electric vehicle targets by increasing costs for consumers.
When asked whether Britain would be prepared to align itself with the EU on tariffs, a Downing Street spokesman said it was “premature to speculate” on the terms of a potential agreement with the bloc.
He then said: “But more broadly, in principle, the UK obviously has its own trade policy and always all tariffs are under review. And we can work closely with the UK automotive sector to ensure that the approach shows the best interest.”