How could the resistance to UK inclusion in Made in Europe affect the Department for Science, Innovation and Technology?
The Department for Science, Innovation and Technology may need to adjust its industrial strategy amid EU and Chinese pressures The resistance from EU leaders, particularly France, to include the UK in the 'Made in Europe' legislation creates significant industrial uncertainty for the UK's car sector. This uncertainty is compounded by intense competition from China, which currently enjoys a £1bn a day trade surplus with the EU. To mitigate these risks—including the threat of 10% tariffs on UK electric vehicles—the Department for Science, Innovation and Technology may need to reassess and adjust the UK's national industrial strategy to bolster local supply chains and competitiveness.
- Effect
- Mild negative
- How direct
- Brind's reasoning
- When
- Within months
- The story
- Still developing
How it reaches Department for Science, Innovation and Technology
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Ola Källenius, head of ACEA, stated that locking the UK out of the Industrial Accelerator Act, known as the Made in Europe law, would hurt the car industry across the EU bloc. The IAA is designed to protect local industry by countering competition, primarily from China. Andy Burnham has been lobbying for the UK to be included in the legislation, but he is encountering resistance, particularly from France.
The full event1independent outlet -
As the car industry faces regulatory uncertainty and increased competition from outside the EU, the UK government must respond to protect its industrial base. The Department for Science, Innovation and Technology is responsible for guiding the UK's industrialization and building local supply chains, making it the key entity required to adjust its national strategy to counter these external threats.
No report states this step directly. Brind drew it from the reporting on each side of it, so treat it as an informed guess.
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United Kingdom government ministerial department
Everything about Department for Science, Innovation and Technology
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The facts so far
As reported. Each one links to where it comes from.
- China is enjoying a £1bn a day trade surplus with the EU.aol.co.uk
- The ACEA is lobbying against plans to introduce 10% tariffs on UK electric vehicles (EVs) imported to the EU.aol.co.uk
- The tariff schedule is written into the post-Brexit Trade and Cooperation Agreement (TCA).aol.co.uk
- Electric batteries can represent about 45% of the cost of a new car.aol.co.uk
Why it matters
The stakes are high for the UK's industrial future. If the UK is excluded from EU industrial protectionism while simultaneously facing intense competition from China, the domestic manufacturing base could be severely weakened. The ability of the Department for Science, Innovation and Technology to secure supply chains and foster innovation is critical to preventing the UK from falling behind its close allies in the European market.
This situation reflects broader global trade tensions. The EU itself is grappling with how to rebalance trade with China, leading to discussions about trade barriers. The UK's position, as highlighted by the lobbying efforts of Andy Burnham, is caught between the desire for closer alignment with the EU and the need to maintain its independent industrial trajectory.
What we don't know yet
- What specific adjustments will the UK government make to its industrial strategy to counter Chinese competition?
- Will the UK government successfully lobby for inclusion in the 'Made in Europe' legislation?
Is this still moving?
- Reports
- 2
- Developments
- 1
- Repetition
- 50%
What would change this answer
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Reporting
- aol.co.ukYesterday
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Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.