Prime Minister Andy Burnham is scheduled to meet with European Commission President Ursula von der Leyen on the sidelines of the United Nations General Assembly as part of ongoing efforts to resolve a dispute over new EU rules affecting British car exports. The talks aim to set a date for a postponed summit intended to reset the United Kingdom’s relationship with the European Union.
The summit was originally planned for early November but was delayed after European negotiators refused to guarantee an exemption for the UK from the Industrial Accelerator Act, commonly known as the "Made in Europe" rules. This legislation, developed by the EU to address the growing presence of Chinese companies in European industries, sets criteria for industrial support programs, including those for the automotive sector.
Industry leaders and trade groups have raised concerns about the impact of the new regulations on British car manufacturing. Mike Hawes, Chief Executive of the Society of Motor Manufacturers and Traders (SMMT), emphasized that the longstanding EU-UK automotive partnership, worth around €80 billion annually, relies on a deeply integrated supply chain and that excluding the UK from the legislation would be harmful. Hawes warned that the rules could threaten jobs, investment, and innovation, undermining the Trade and Cooperation Agreement (TCA) negotiated post-Brexit.
The European Automobile Manufacturers’ Association supports the overall goal of the act but calls for its scope to be extended to "EU 27 plus the UK" to reflect the close relationship between the two markets. The UK is the largest export market for EU cars and parts, and vice versa. Industry voices have described the potential effects on manufacturers like Nissan, which produces cars in the UK mainly for European customers, as “devastating” and an existential threat to the future of car manufacturing in Britain. Concerns have also been raised that the regulations might incentivize companies to relocate production within the EU to maintain eligibility for protective measures against Chinese competition.
Sources from the UK government indicated that earlier drafts of the summit agreement included EU concessions for the UK regarding the Made in Europe rules. However, following Burnham’s replacement of Sir Keir Starmer as prime minister, the EU withdrew these concessions amid worries that Burnham intended to revisit parts of the previous arrangements, notably a youth mobility scheme that would have allowed tens of thousands of young Europeans to live and work in the UK annually. Some officials suggested this step was taken because the new UK administration’s proposals were seen as incompatible with prior commitments.
Despite this setback, British ministers have intensified efforts to persuade the EU to reconsider its position. Chancellor John Healey recently lobbied EU finance ministers at a meeting in Dublin to secure a carve-out for the UK, arguing that closer ties should facilitate better access to essential supply chains and markets for British businesses.
From the EU perspective, officials acknowledge the UK’s concerns but note that other external partners, such as Turkey and Japan, face similar challenges under the new rules. A senior EU diplomat stated that the legislation is still under negotiation among the European Commission, member states, and the European Parliament, signaling that discussions on the final form of the act remain ongoing.
As the situation develops, both sides are reportedly hopeful that an agreement on a summit date can be announced shortly, reflecting a shared interest in maintaining cooperation despite current disagreements over trade and regulatory alignment.