France Backs UK Inclusion in Made in Europe Legislation 2026

France has dropped its opposition to the UK being included in the EU’s “Made in Europe” legislation, marking a significant shift in French politics and EU trade dynamics. This move, conditional on the UK aligning with the bloc’s tariffs on Chinese EVs, could reshape the automotive industry and strengthen European manufacturing against cheap competition.

Why France Changed Its Stance on Made in Europe

France’s reversal comes after persistent advocacy from Germany, which has long supported the UK’s calls to be designated European for the purposes of the Industrial Accelerator Act. This draft legislation aims to protect domestic manufacturing from cheap Chinese imports. According to a joint Franco-German paper seen by the Guardian, the two countries now propose that for the car industry specifically, the UK could be included in Made in Europe.

The paper states: “For the automotive sector, ‘Made in Europe’ should comprise the EU27 and an opt-in to further include European partners who were part of the EU single market as of 01/01/2020, subject to an agreement on full reciprocity – i.e. adopting the European preference scheme relevant to the automotive sector.” This clear reference to the UK, which was still in the single market as an EU member in January 2020, also includes Norway, a non-EU member in the single market.

Conditions for UK Inclusion

The opt-in would come with conditions, including alignment on trade defence measures. These have included tariffs on Chinese EVs imposed by the EU in 2024 and any future trade barriers, such as quota deals. The UK would need to adopt the European preference scheme for the automotive sector, ensuring full reciprocity.

This development is crucial for French politics and EU-UK relations, as it signals a willingness to cooperate on industrial policy despite post-Brexit tensions. The UK’s inclusion could help bolster the European automotive industry against Chinese competition, but it requires the UK to align closely with EU trade policies.

Impact on the Automotive Industry

The automotive sector stands to benefit significantly from this inclusion. By designating the UK as part of Made in Europe, European car manufacturers can maintain integrated supply chains and avoid tariffs that would otherwise apply to UK-made components. This is particularly important as the EU ramps up its efforts to counter Chinese EV subsidies.

However, the UK’s alignment with EU tariffs on Chinese EVs could strain its trade relations with China. The UK government must weigh the benefits of being part of Made in Europe against potential retaliation from China.

Comparison of Positions Before and After France’s Shift

Key Takeaways

• France has dropped its opposition to the UK being part of Made in Europe legislation.
• The shift is conditional on the UK aligning with EU tariffs on Chinese EVs.
• Germany has consistently backed UK inclusion, and a joint Franco-German proposal now supports it.
• The UK would need to adopt the European preference scheme for the automotive sector.
• This move could strengthen the European automotive industry against Chinese competition.

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