EU presses UK to raise tariffs on Chinese cars to prevent ‘Made in Europe’ barriers

The EU has urged Britain to increase tariffs on Chinese-made cars and bring its trade policies closer to the bloc’s as London seeks to prevent new “Made in Europe” restrictions from affecting British exports, according to a report Friday.

Brussels’ recommendation comes after weeks of lobbying by British officials for UK products to receive the same treatment as goods from EU member states, the Financial Times reported, citing two people familiar with the discussions.

“A customs union would solve most of the problems of ‘made in Europe’ … and also the question of tariff differences, which leads to fears the Chinese could avoid our tariffs by routing through the UK,” an EU official said.

Under the “Made in Europe” proposal, the European Commission’s Industrial Accelerator Act would give European-made products, including cars, steel and green technologies, preferential treatment in public contracts.

However, UK Prime Minister Andy Burnham has previously said he will stick to the red lines the Labour Party set out at the last election, ruling out membership of a customs union or the single market.

“There is a cruel irony in how European concerns about Britain have evolved: from fears of a ‘Singapore-on-Thames’ to fears of a ‘Turkey-across-the-Channel’,” said a second EU official.

“The concern today is no longer a hyper-competitive, globalised Britain on Europe’s doorstep, but a Britain that could become a backdoor into the European market for Chinese goods,” the official added.

According to the report, a senior British official acknowledged the political challenge facing the government, saying: “It’s hard to argue we want to be on the inside of ‘fortress Europe’ when the other side can point at tariff policies that are arguably undermining the rising walls of the fortress.”

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