France withdrew its opposition to including the UK in EU "Made in Europe" legislation on Thursday, provided Britain aligns with the bloc's tariff stance on Chinese electric vehicles.
The shift represents a win for Andy Burnham, the UK's lead negotiator on the issue. Germany has consistently backed the UK's inclusion. France's reversal means the UK could now qualify as European under the Industrial Accelerator Act, draft legislation designed to shield domestic manufacturers from cheaper Chinese competition.
The deal hinges on one condition: the British government must adopt the EU's position on tariffs applied to Chinese-made EVs. No details on the specific tariff rates or timeline appear in the available reporting.
Germany had already backed the UK's designation as European for the purposes of this legislation. France's earlier opposition marked a significant obstacle to the arrangement, making Thursday's announcement a substantive diplomatic breakthrough.
The Industrial Accelerator Act remains in draft form. Its core purpose targets protection of European and, potentially, British manufacturing sectors from underpriced competition originating in China, particularly in the EV market.