UK calls for inclusion in Made in Europe framework

There are calls for the UK to be part of the EU’s emerging ‘Made in Europe’ framework warning if it is left outside, it will impact the continents supply chain resilience.

It comes as the British Chambers of Commerce (BCC) backed a joint statement from its Chambers in Europe for the UK to be part of the framework.

The statement warned that treating the UK as a conventional third country would ignore decades of co-operation and the deeply integrated supply chains between the UK and EU.

It has been signed by 13 British Chambers in Europe which represent thousands of businesses in their countries. The letter argues that a restrictive approach on Made in Europe could raise costs, create new administrative burdens and weaken investment certainty.

Sectors that could be badly hit include automotives, aerospace, pharmaceuticals, chemicals, energy and advanced manufacturing.

In the letter the chambers state: “A ta time of intensifying international competition, Europe is under increasing pressure to consolidate its industrial base, accelerate innovation, secure critical supply chains and reduce strategic dependencies.

“Strengthening industrial competitiveness, accelerating decarbonisation and enhancing economic resilience are therefore shared objectives across the continent.

“Businesses across the European Union and the United Kingdom are confronting many of the same challenges, from economic security and the energy transition to skills shortages and technological transformation. Achieving these goals will require policies that reflect the reality of modern industrial value chains and support cooperation with trusted partners.

“The European Union and the United Kingdom remain among each other’s largest trading and investment partners, with deeply integrated supply chains spanning manufacturing, energy, pharmaceuticals, chemicals, agri-food, aerospace and automotive industries.

“In that context, the United Kingdom should not be viewed as a typical third country within the Made in Europe debate.”

It added: “Decades of industrial cooperation, deeply integrated supply chains, comparable regulatory standards and robust commitments under the EU-UK Trade and Cooperation Agreement have created uniquely interconnected industrial ecosystems. For businesses operating across European value chains, a clear and durable recognition of the United Kingdom as a trusted partner and equivalent to EU-Origin remains the most effective and predictable way of supporting competitiveness, resilient industrial investment and long-term planning certainty”

The issue has also concerned the UK government with worries EU industrial rules will cause collateral damage to British firms and their European customers.

UK prime minister, Andy Burnham, has already raised UK concerns directly with the president of the European Commission, while the BCC has consistently called for a durable solution which protects integrated supply chains.

The joint statement makes three key asks of EU policymakers:

Recognise the United Kingdom as a trusted partner within the ‘Made in Europe’ framework, reflecting integrated supply chains, comparable standards and the commitments in the EU–UK Trade and Cooperation Agreement.

Allow UK-origin industrial content to count towards relevant European value-chain, industrial-policy and procurement requirements, where appropriate.

Provide certainty through a clear and predictable trusted-partner framework, rather than relying on fragmented product-by-product or sector-by-sector assessments.

William Bain, Head of Trade Policy at the British Chambers of Commerce, said: “The BCC is proud to support this strong, united call from British Chambers across Europe. It reflects what businesses on both sides of the Channel have been telling us: modern supply chains do not stop neatly at political borders.

“The UK is not a conventional third country. Our automotive, aerospace, chemicals, pharmaceutical and advanced manufacturing industries are woven into European production, underpinned by comparable standards and strong level-playing-field commitments.

“UK Ministers are right to make that case in Brussels, and this statement gives added weight from businesses operating across the continent.

“The best answer is a clear trusted-partner framework which recognises UK content, gives firms certainty and avoids a bureaucratic product-by-product approach. That would support European competitiveness and resilience, rather than weakening supply chains the EU wants to strengthen.

“We support stronger European industrial capacity, but it should be ‘Made with Europe’, working with trusted partners such as the UK. A formal economic security agreement between the UK and EU would provide the durable foundation businesses need.”

The BCC has previously warned that poorly designed ‘Made in Europe’ rules could squeeze British firms out of established supply chains, increase costs and bureaucracy, and disrupt EU manufacturers relying on UK components. While there are exemptions for UK goods in elements of the Industrial Accelerator Act, there are still risks around automotive assembly requirements and other measures that may extend localisation criteria.

SHARE: