The Made in Europe laws could derail the UK's plans for a reset with the EU, government sources have warned. The Industrial Accelerator Act, designed to curb China's influence in European industry, was not part of the original reset plan agreed by former prime minister Keir Starmer and European Commission chief Ursula von der Leyen in May 2025. A follow-up summit scheduled for July was cancelled after Starmer's resignation, and ministers now fear the reset has lost momentum under new PM Andy Burnham.
What Is the Made in Europe Legislation?
The Industrial Accelerator Act, informally called "Made in Europe," prioritises EU suppliers in key sectors such as car manufacturing and defence. It aims to reduce dependence on Chinese components and boost European industry. However, UK businesses fear exclusion from EU supply chains, which could cost billions in lost trade.
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Impact on UK-EU Trade Relations
The UK's reset with the EU was meant to rebuild ties post-Brexit. But the Made in Europe laws threaten to lock British firms out of lucrative EU contracts. Trade minister Anas Sarwar has urged UK business leaders to lobby their EU counterparts about the risks. Meanwhile, Hamish Falconer, the new cabinet minister responsible for the reset, told EU trade commissioner Maros Sefcovic that Made in Europe must be on the agenda.
Key Sectors at Risk
- Automotive: UK car parts makers could lose EU contracts.
- Defence: British defence firms may be sidelined in EU projects.
- Green tech: Renewable energy suppliers face exclusion.
- Pharmaceuticals: UK drugmakers could be pushed out of EU procurement.
Comparison: UK vs EU Business Priorities
| Aspect | UK Priority | EU Priority |
|---|---|---|
| Trade focus | Access to EU single market | Protecting EU industry |
| China policy | Balanced engagement | Curbing Chinese influence |
| Regulatory alignment | Selective alignment | Strict EU standards |
| Summit agenda | Include Made in Europe | Focus on reset deliverables |
What This Means for UK Businesses
UK companies in manufacturing and defence must prepare for potential exclusion from EU supply chains. The government is pushing for Made in Europe to be added to the next UK-EU summit agenda. Without concessions, British firms could face tariffs, red tape, and lost contracts. Ministers are also concerned that the reset has stalled since Burnham took office, with domestic issues taking precedence.
FAQ
What is the Made in Europe law?
The Made in Europe law, formally the Industrial Accelerator Act, is EU legislation that prioritises European suppliers in key industries to reduce reliance on China.
How could Made in Europe derail the UK-EU reset?
It could exclude UK businesses from EU supply chains, undermining the reset's goal of closer trade ties and causing economic damage to British firms.
What is the UK government doing about it?
UK ministers are lobbying the EU to put Made in Europe on the summit agenda and urging business leaders to highlight the risks to their EU partners.
The Made in Europe laws pose a significant challenge to the UK's post-Brexit reset with the EU. As negotiations continue, British businesses must stay informed and advocate for their interests to avoid being locked out of European markets.
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