British Chambers unite against ‘Made in Europe’ rules amid fears for UK industry

Business groups across Europe are calling for British manufacturers to be recognised under the EU’s proposed ‘Made in Europe’ framework, warning that restrictive rules could increase costs and disrupt established supply chains

British Chambers of Commerce across Europe have launched a joint appeal to Brussels over proposed manufacturing rules that they fear could threaten British jobs and disrupt industries ranging from car production to aerospace.

The intervention, backed by the British Chambers of Commerce (BCC), calls for British-made components to be recognised under the EU’s emerging ‘Made in Europe’ framework rather than face restrictions intended to strengthen European manufacturing.

Thirteen British Chambers representing thousands of businesses have signed the joint statement, warning that excluding UK suppliers could increase costs, create additional bureaucracy and undermine investment across Europe.

The dispute centres on the European Commission’s proposed Industrial Accelerator Act, which introduces requirements favouring European-made and low-carbon products in certain public procurement contracts and government support schemes.

Brussels says the legislation is intended to strengthen European manufacturing, accelerate the development of cleaner technologies and improve industrial competitiveness.

But the Chambers warn that restrictive rules could damage established supply chains connecting British manufacturers with their European customers, particularly in the automotive, aerospace, pharmaceutical, chemical and energy industries.

The Chambers want the UK formally recognised as a trusted industrial partner, allowing British components to count towards relevant European manufacturing and procurement requirements.

They are also calling for clear rules governing British participation, avoiding separate assessments for individual products and industries.

William Bain, the head of trade policy at the BCC, 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.”

Although parts of the proposed legislation already contain exemptions for British goods, the BCC remains concerned about automotive assembly requirements and other measures that could restrict where European manufacturers source their components.

The appeal follows talks between Prime Minister Andy Burnham and European Commission President Ursula von der Leyen during last week’s United Nations General Assembly in New York.

The Chambers now want industrial policy and economic security cooperation included in discussions at the forthcoming summit, alongside a longer-term agreement protecting trade between Britain and the EU.

Bain added: “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.”

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_{Main image: An aerial view of Vauxhall’s Luton factory in 2024, before its closure. Britain’s automotive industry is among the sectors that business leaders warn could face higher costs and supply-chain disruption under proposed EU ‘Made in Europe’ rules.Credit: Thomas Nugent / CC BY-SA 2.0}