Government sources have said the UK’s EU reset summit will be delayed again unless the bloc agrees to discuss legislation that could shut British businesses out of parts of EU industry.
The “Made in Europe” legislation, officially called the Industrial Accelerator Act, is meant to limit China’s growing role in European industry. However, it was not part of the reset plan agreed by former prime minister Keir Starmer and European Commission chief Ursula von der Leyen in London in May 2025.
A follow-up summit was scheduled for July this year but was cancelled after Starmer resigned. The government now wants to change the roadmap, with one source saying “Made in Europe should be on the agenda.”
It is understood that Hamish Falconer, the new cabinet minister responsible for the reset, told the EU’s trade commissioner, Maroลก ล efฤoviฤ, that this was the UK’s new priority when the two met last week.
Trade minister Anas Sarwar told a gathering of UK business leaders on Tuesday that they needed to inform their EU partners about the risks posed by Made in Europe, which will prioritise EU suppliers in key industries such as car manufacturing and defence.
Ministers have privately expressed fears that the reset has lost significant momentum since Andy Burnham became prime minister, given his focus on domestic matters. Agreements have yet to be reached on several key issues, including what tuition fees EU students will pay under a proposed “youth experience” programme.
UK sources say that while a food and drink deal and a youth mobility scheme are still on the agenda, the government will not agree to a new summit date until the larger issues around the Industrial Accelerator Act are included in discussions.
There was talk in London and Brussels of holding a meeting on 6 November, but it is understood this could now be pushed back to the end of November or later.
One government source said: “We are willing to negotiate on the things that matter to them, but they have to be able to negotiate the thing that matters to us. Made in Europe should be on the table, definitely.”
The UK fears the Made in Europe laws could put billions of pounds worth of trade at risk if British goods are not classified as European, shutting it out of key contracts on the continent.
France, which came up with the Made in Europe laws, is pushing to have the legislation passed by the end of the year, deepening fears that British manufacturing could be left behind.
France is thought to be sympathetic to the UK’s position, but believes growing competition from China makes it more important to get the legislation passed now and make allowances for third countries later, a process that could take years.
One EU diplomat said there was substantial support among key member states for including the UK in Made in Europe, though not all agreed. “The problem is the benefits are seen as asymmetrical,” the diplomat said. “The UK gets more out of it than the EU.”
It is understood the Netherlands, Germany, Poland and Italy all support including the UK, but France remains unconvinced.
The government’s newly assertive approach could give the UK some leverage in negotiations over concessions on youth mobility, which is a political priority for many EU capitals.
Another UK source said a deal on Made in Europe would be “a good faith demonstration that we can find answers and almost everything else.”
A government spokesperson said: “The UK is a close and trusted European partner, committed to our shared security and economic cooperation.
“We will continue to engage with thThe EU should work with like-minded partners on Made in Europe initiatives to boost growth and open up trade.”
The UK’s push for a deal on manufacturing rules comes as the EU faces pressure from industry across the bloc to reduce China’s growing role in supply chains. Last week, manufacturing leaders warned that 300,000 jobs could be lost this year unless incentives are introduced to make European products more attractive than cheaper parts from China.
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The EU’s trade deficit with China now stands at โฌ1bn a day, amid fears that European companies are being undermined from within.
Fears of new China shock as EU industry’s reliance on imports grows
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In her state of the union address to the European parliament on Wednesday, von der Leyen said the EU needed to increase non-Chinese supplies of rare earths and critical minerals essential to manufacturing. Her surprise offer of an associate membership deal with Canada showed how far Brussels is willing to go to court third-country partners.
Speaking alongside Canadian prime minister Mark Carney, the EU chief said: “We want to bring the relationship with Canada to the highest level possible. We must urgently reimagine our partnerships.”
The EU and Canada will hold a summit in late October to develop their future relationship. The 27-member EU has never had an associate membership category, though it has close ties with Norway, Iceland and Switzerland, allowing deep economic integration with these countries, which follow many EU rules including free movement โ a red line for the UK.
Carney, who will address the European parliament on Thursday, has called for a “unique alliance” with the EU as his country seeks to reduce its heavy dependence on US trade.
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Mark Carney and Andy Burnham in Liverpool on Wednesday night. Photograph: John Clifton/Action Images/Reuters
Burnham met Carney at a football match in Liverpool on Wednesday night, where the two Everton fans watched their team in the EFL Cup. Burnham is also due to meet US president Donald Trump for the first time at the UN general assembly in New York next week.
The potential new alliance between the EU and Canada will worry UK ministers that the bloc’s priorities are shifting. If Burnham fails to complete a food and drink deal that was already on Starmer’s reset agenda, it could have implications for October’s budget, as the economic effects of easing trade with the EU are factored into growth calculations.
The Conservatives criticised the UK-EU reset on Wednesday, saying a future Tory government would build a wholly independent regulatory system.
Alex Burghart, the party’s deputy leader, and Victoria Atkins, the shadow environment secretary, warned the plans would make Britain less competitive.
Speaking at the Policy Exchange thinktank, Burghart said: “Labour’s EU reset is the worst of both worlds and will leave Britain unable to take advantage of our country’s future growth potential.
“The next Conservative government would not be bound by this arrangement and will begin work now on a genuinely independent regulatory system.”
Frequently Asked Questions
Here is a list of FAQs about the Made in Europe law and its impact on UKEU relations
1 What is the Made in Europe law
It is a new set of rules proposed by the European Union It requires companies to prove that a certain percentage of their productslike solar panels batteries or wind turbineswere actually made within Europe This is to boost European manufacturing and reduce reliance on other countries like China
2 Why does this law put UK plans at risk
The UK wants to reset its relationship with the EU after Brexit However this law treats the UK as a third country If UK factories dont count as European under these new rules UKmade parts might be excluded from EU green energy projects This creates a new barrier to trade making it harder for the UK and EU to be close partners
3 Does the UK count as Europe for this law
Geographically yes Politically and legally under this law no The EU defines Made in Europe as made within the EU member states Because the UK left the EU its products are treated the same as products from the US or Japanthey are imports not domestic European goods
4 What specific industries are affected
The law focuses on netzero technologies This includes
Solar panels
Wind turbines
Batteries
Heat pumps
Electrolysers
5 What does reset relations mean
After Brexit UKEU relations were tense The UK government wants to reset them meaning they want to fix problems reduce bureaucracy and cooperate more closely on issues like defense trade and climate change This law threatens that reset because it creates a new trade dispute
6 Will this law make green energy more expensive
Possibly If the EU limits competition from cheaper UK or Chinese suppliers European companies might charge more for their products The EU argues that supporting local industry is worth the cost for energy security
7 Can the UK do anything to change the law
No The UK is no longer part of the EU so it has no vote or veto over EU laws The UK can only negotiate with the EU to try to get an exemption or a special deal but the EU is not obligated to agree
