From the Guardian · · 2m
UK demands EU trade law be part of reset talks
Britain is holding up negotiations with Brussels until a new manufacturing rule gets discussed.
In brief
Britain is holding up negotiations with Brussels until a new manufacturing rule gets discussed. The UK is using leverage on a new EU law targeting China to push for concessions on other issues like youth mobility. Originally reported by the Guardian.
New EU law threatens UK trade
The Made in Europe legislation aims to curb Chinese influence in European industry but could lock British businesses out of key contracts if goods aren't classified as European.
UK delays summit over the law
The government says it won't set a date for the next EU reset summit unless Made in Europe is added to the negotiation agenda.
What is Made in Europe
Formally called the Industrial Accelerator Act, it prioritises EU suppliers in car manufacturing, defence and other key industries to counter growing Chinese competition.
France pushing for quick passage
France, which created the law, wants it passed by year's end. It believes addressing Chinese competition now is more important than making allowances for third countries later.
Some EU states back UK inclusion
The Netherlands, Germany, Poland and Italy support including Britain in the law, but France remains unconvinced, saying the benefits would be asymmetrical.
“The problem is the benefits are seen as asymmetrical. The UK gets more out of it than the EU.”
UK using it as negotiating leverage
Britain's assertive stance on Made in Europe could give it leverage to win concessions on youth mobility and other issues that matter to EU capitals.
EU facing Chinese supply pressure
Manufacturing bosses warned of 300,000 potential job losses unless incentives make European products more competitive than cheaper Chinese alternatives.
EU deficit with China soaring
The EU's trade deficit with China now runs at one billion euros per day, with fears that European companies are being undermined from within.
EU courts Canada as alternative
Von der Leyen offered Canada an associate membership deal, a category the EU has never created before, to diversify supply chains away from China.
UK worried about shifting priorities
The EU-Canada alliance could signal Brussels is shifting focus away from the UK reset, potentially affecting food and drink deals already on the agenda.
Tories promise independent system
Conservative leaders warned the reset makes Britain less competitive and said a future Tory government would build a wholly independent regulatory system instead.
Reset momentum has slowed
Ministers privately worry the reset has lost steam since Andy Burnham became prime minister and focused on domestic priorities over EU negotiations.
The key point
The UK is using leverage on a new EU law targeting China to push for concessions on other issues like youth mobility.
