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UK Cars Face EU Trade Barrier
22 Sep
Summary
- Britain's exclusion from EU's 'Made in Europe' provisions creates competitive disadvantage.
- UK vehicles denied incentives like CO2 super credits and green fleet support.
- Excluding the UK harms competitiveness, scale, and consumer choice in Europe.
The British automotive industry faces a competitive disadvantage due to its exclusion from the European Union's proposed 'Made in Europe' provisions. This policy, currently under debate, would deny UK-manufactured vehicles incentives available to those built within EU member states. These benefits include support for greener corporate fleets and CO2 super credits, vital for market competitiveness.
Furthermore, the proposed regulations would also exclude British vehicles from public procurement contracts awarded by EU member states. This highlights the significant economic interdependency between the UK and the EU in the automotive sector, with annual cross-Channel trade valued at €80 billion. Industry leaders argue that excluding the UK would weaken overall competitiveness, reduce economies of scale, and limit consumer choice across the bloc.
