‘Most spectacular own goal in history’: new EU rules threaten to shut out UK car manufacturers

The EU’s car industry has called for the UK to be fully included in new “Made in Europe” rules that threaten to shut out British manufacturers from their biggest export market. The European Automobile Manufacturers Association (Acea) on Wednesday urged Brussels to give the UK, Turkey and Morocco “justified, targeted exemptions” to the rules, which will require cars and parts to be made within the EU to qualify for subsidies or public procurement. The European Commission drafted the rules under the Industrial Accelerator Act (IAA) to try to protect the EU’s industry from China , whose cheap but heavily subsidised exports have undercut European products. However, the rules threaten to become the most damaging consequence of Brexit yet for British manufacturers because they apply to EU members only. Acea, which is seen as highly influential among European governments, said: “The European automotive industry operates a deeply integrated value chain with the UK, even post-Brexit. Vehicles, components and batteries made in the UK should therefore hold the same status as those made in the EU27 – with equal access to every policy instrument.” The backing of the powerful lobby group will help the UK in negotiations with the EU to avoid damage . Britain’s Europe affairs minister, Nick Thomas-Symonds, was meeting the EU’s trade commissioner Maroš Šefčovič on Wednesday to discuss progress of UK-EU relations, with the IAA part of the agenda. …