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British automotive sector concerned about the EU’s “Made in EU” draft

The umbrella organization of the UK automotive sector, the Society of Motor Manufacturers and Traders (SMMT), has expressed serious concerns regarding the European Union’s (EU) “Made in EU” draft. SMMT Chief Executive Mike Hawes stated that the proposal could harm trade relations between the UK and the EU.

British automotive sector concerned about the EU’s “Made in EU” draft

Hawes, in his statement following the release of the details of the European Commission’s Industrial Acceleration Act proposal, known as the “Made in EU” draft, said that the proposal would discriminate against vehicles and parts produced in the UK and could harm trade relations worth approximately £70 billion annually.

Hawes emphasized that the UK and the EU are each other’s largest customers and suppliers, stating: “The strict assembly rules and EU27 conformity criteria proposed by the EU will systematically place UK manufacturers at a competitive disadvantage. This situation could also be contrary to the spirit of the EU-UK Trade and Cooperation Agreement.”

Hawes stressed the need for the UK government and European counterparts to urgently resolve the issue, highlighting the importance of the sector obtaining full and reliable partner status. He noted that this is necessary not only to provide consumers in the UK and Europe with options, particularly in zero-emission vehicles, but also to ensure economic growth and security.

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