BRUSSELS — Britain is hopeful of doing a deal with the European Union to avoid British businesses being hit by new Made in Europe trade rules, the minister in charge of talks has said. European Relations Minister Hamish Falconer told POLITICO’s Brussels Playbook Podcast it was “overwhelmingly in both sides’ interests” to strike an agreement on the proposed controls. The U.K. has urged the EU to guarantee that British producers won’t be affected.
Brussels says it can’t give those guarantees now as the rules are still working their way through the bloc’s cumbersome legislative process. Yet in the event a deal isn’t reached, London believes its Brexit trade deal, the Trade and Cooperation Agreement (TCA), could force Brussels to think again. That’s a strong arrangement between us which is independently overseen,” Falconer said.
Our basic position to our friends is, look, I don't think European competitiveness is enhanced by putting further impediments in the way of our industrial base.” There are those in Brussels who agree. In-house lawyers at the EU Council have advised member countries that the bloc’s plans for the Industrial Accelerator Act could violate the union’s international trade deals, according to documents seen by POLITICO. Falconer suggested the U.K. wanted a “straightforward” and “unfussy” arrangement where U.K. goods were simply counted as being of Union origin under the IAA.
But the minister wouldn’t be drawn on whether success at the upcoming U.K.-EU summit demanded an agreement on Made in Europe — as London had previously briefed. That meeting is meant to sign off talks on agri-foods, youth visas, and emissions trading — as well as act as a launchpad for further negotiations. I used to be a diplomat; there’s no discussion or negotiation that is made easier by publicly broadcasting it,” Falconer said.
The minister rejected suggestions the EU was demanding the U.K. raise tariffs on Chinese cars in exchange for guarantees on the IAA. He stated that he was “surprised” at reports to that effect, adding: “That’s not the kind of conversation that I’m having with my European counterparts.” Yet a landing zone may be emerging. EU officials and diplomats have previously indicated that reference could still be made to the subject at the meeting — perhaps in the form of a political declaration.
Falconer, who was in Strasbourg on Wednesday for his first European Parliament plenary, confirmed that he would be discussing “future options with European partners” — following Prime Minister Andy Burnham’s suggestion the U.K. could rejoin the EU, or at least its customs union or single market. He is using the visit to meet with Trade Commissioner Maroš Šefčovič, as well as European Parliament President Roberta Metsola. Of the EU institutions debating the industry act, Parliament is pushing for the strictest line on the Made in Europe rules.
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