According to a report by the Financial Times on September 25th, the EU has informed British Prime Minister Barnett that Britain needs to raise tariffs on Chinese cars and to align its trade policies more closely with those of the EU, in order to avoid key British export products being subject to ‘Made in Europe’-related barriers.
Reports say that two people familiar with the matter revealed that in response to the UK’s lobbying for equal treatment for British products, the EU told the UK that the best solution is to join the EU customs union.
An EU official revealed: “The customs union will address most of the issues associated with ‘made in Europe’, as well as the issue of tariff differences. These differences are concerning, as Chinese companies may use Britain as a transit point to avoid our tariffs.”
The UK government spokesperson responded to requests for comment saying, “We have always independently formulated trade measures and only based our decisions on the economic interests and industrial interests of the UK.”
This spokesperson stated, "However, both Europe and the United Kingdom face many of the same challenges, therefore protecting the flow of trade between our two sides is vital."
Bernam said this week that he will strive to make the UK a ‘reliable partner’ under the EU’s proposed ‘Made in Europe’ rules. He also warned that excluding the UK could harm the British automotive industry.
Reports suggest that the “Made in Europe” policy aims to reduce reliance on Chinese components by prioritizing purchases of products manufactured in Europe. This has caused concern among the British automotive industry, as it both supplies components to the EU supply chain and sells cars across the EU.
European Commission Chairperson Ursula von der Leyen stated during her speech to the European Parliament last month that the EU will use all available tools to reduce its “un sustainable” trade deficit with China.
China has repeatedly emphasized that the essence of China-EU economic and trade relations is mutual benefit and win-win results, rather than a zero-sum competition where one party wins and the other loses. Adhering to open cooperation and resolving economic and trade disputes through equal dialogue and negotiation is in the common interest of both China and the EU. We hope that the EU will abide by its commitments regarding market openness and free trade, comply with WTO rules, and provide a fair, impartial, and non-discriminatory business environment for enterprises from all countries. We will closely monitor the actions of the EU and take necessary measures to safeguard the legitimate rights and interests of Chinese enterprises.
