The United Kingdom, Japan, and Turkey are actively seeking to secure inclusion for their automotive industries within the European Union’s proposed “Made in Europe” industrial framework, amid concerns that the bloc’s evolving policies could disadvantage non-EU carmakers.
The EU’s Industrial Accelerator Act aims to prioritize public contracts and subsidies for technologies such as electric vehicles (EVs) and clean energy toward goods manufactured within Europe. This marks a significant departure from traditional free-trade principles, designed to strengthen European competitiveness against China’s expanding dominance in strategic sectors.
While countries with existing trade agreements benefit in part from the initiative, new requirements mandating vehicle assembly within the EU could limit access to subsidies and fleet incentives for vehicles produced outside the bloc. This has raised apprehensions among trade partners with significant automotive operations tied to the EU market.
Japan is reportedly pursuing a bilateral agreement with Brussels to integrate its carmakers into the scheme, signaling Tokyo’s intent to maintain a foothold in the bloc’s evolving industrial landscape. The UK government has voiced similar concerns, with Prime Minister Andy Burnham discussing with French President Emmanuel Macron the risk that Britain’s auto sector may be unfairly impacted by the new rules. The UK hopes to address the issue within broader negotiations slated for November, aimed at resetting post-Brexit relations between London and Brussels.
Turkey, which maintains a customs union with the EU, is also pressing to retain access, emphasizing the mutual benefits of their “€54 billion” automotive trade relationship. Turkish Trade Minister Ömer Bolat warned that excluding Turkey’s car industry could negatively affect the EU’s own industrial base. Canada, meanwhile, has expressed interest in aligning its industrial strategies to qualify for inclusion, according to Industry Minister Mélanie Joly.
European Commission officials have indicated openness to discussions that would accommodate trade partners’ automobile sectors, highlighting the goal of leveraging the single market to foster new business opportunities. However, the legislative process remains complex, with EU member states and the European Parliament engaged in ongoing negotiations to define the parameters of the Made in Europe rules. Trade partners seek assurances that their interests are safeguarded, as prolonged uncertainty could disrupt investment and production planning.
Members of the European Parliament have proposed that the rules primarily focus on manufacturing within the EU, while granting the Commission discretion to extend exceptions to close partners like the UK. Christopher Grudkler, a key figure in shaping the parliamentary position, stressed the importance of preserving the European ambition behind the legislation. “If we say it’s ‘Made in Europe’ and it’s manufactured on the other end of the world, voters are going to say these European legislators are mad,” he said, underscoring the tension between protectionist goals and trade integration.
As discussions continue, balancing the EU’s strategic industrial objectives with the interests of global trade partners remains a critical challenge.