The dispute over the EU's "Made in Europe" rules, which would give preference to European companies over foreign ones in public tenders and state aid, brings back bitter memories of Brexit, with British ministers concerned that British companies will not be treated fairly under the new European rules, Politico reports, writes UNN.
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"Does Brexit still mean Brexit? In France, it certainly does." This once laconic slogan of the British government has unexpectedly found a new home in Paris, the publication writes.
For the government of French President Emmanuel Macron, the publication notes, "it means that Great Britain will not be able to take advantage of the benefits of membership in the bloc's single market after leaving the union."
This has implications for London's desire to "reset" relations with Europe and move closer to the EU's orbit, the publication writes.
"The latest battleground is the EU's plan to implement 'Made in Europe' rules, which would give preference to European companies over foreign ones in public tenders and state aid," the publication says.
Four French officials said that "British firms should not automatically receive the same benefits as EU firms under the new rules."
European Commissioner for Internal Trade and Services Stéphane Séjourné, a member of Macron's party, prepared these proposals, giving France significant influence over the negotiations, the publication writes.
"However, the desire to exclude British firms has caused concern in London, where the government wants British companies to be treated the same as other European companies," the publication notes.
British ministers, it is noted, are traveling between countries trying to convey this message.
The country's Business Minister Peter Kyle will meet with senior European Commission officials and industrialists in Brussels on Wednesday, and the country's Trade Minister Chris Bryant is also expected to convey this message during his visit to Paris and meeting with the French Trade Minister next month.
"The British government fears that the new rules risk undermining British business and has launched a maneuver to be included in the 'Made in Europe' club," the publication says.
"We are working with EU countries and the European Commission on this issue. Of course, we are concerned, but we will act in good faith," said one UK government official, arguing that excluding the UK from the new 'Made in Europe' club could backfire against some European and French companies that have strong trade ties with the UK.
"The reality is that many French businesses whose supply chains are closely linked to the UK will be having serious conversations with the French government," the official said.
France does not believe their arguments.
The reasoning of French officials is simple: "since Great Britain left the EU single market, it should not enjoy the benefits associated with it," the officials noted.
"You can't have your cake and eat it too," one French official stated directly.
British companies warn that they view the EU rules as a threat.
The Society of Motor Manufacturers and Traders (SMMT) accused Brussels of "protectionism."
UK Chancellor Rachel Reeves took a more diplomatic stance when she called on the EU earlier this month to include the UK in the "Made in Europe" club, saying that excluding it from a scheme aimed at increasing the bloc's resilience made no sense.
France hopes to exclude granting the UK preferences compared to other non-EU countries. The French government is open to the idea of including members of the European Economic Area - Norway, Iceland, and Liechtenstein, as provided for in the text, the publication writes.
Paris states that it may consider granting the UK some benefits within the "Made in Europe" package, such as European preferences in tenders, but only at a later stage and under certain conditions that are yet to be agreed upon.
France's caution reflects a broader approach to restoring relations with the UK.
"Anything that brings the UK closer to Europe is welcome. But Brexit happened, so we can't just pretend it didn't. In restoring these relations, we need to take into account that they are no longer members of the EU," French Minister of Economy and Finance Roland Lescure told reporters earlier this month, commenting more broadly on EU-UK ties in the defense and energy sectors.
"By drawing a line on the single market, the UK has left not only the single market as we know it, but also its future developments, such as the 'Made in Europe' rules," said Sandro Gozi, co-chair of the European Parliament's contact group on the UK.
However, Gozi, an ally of Macron, expressed hope that one day the UK would reconsider its decision to leave the single market.
"This is both a trade debate in the EU and a Brexit debate playing out along old lines - France taking a hard line, other countries more inclined to emphasize openness," said David Henig, director of the European Centre for International Political Economy in the UK.
The provisions of the "Made in Europe" program, which are part of the upcoming EU Industrial Accelerator Act, are controversial even among countries, as they mark a paradigm shift from the bloc's traditional free trade agenda.
The text, prepared by European Commissioner for Industry Stéphane Séjourné, a close ally of Macron, was postponed on Monday for the third time amid disagreements over the scope of the "Made in Europe" measures and significant internal resistance within the European Commission, the publication writes.
In the latest draft text obtained by the publication, the European Commission committed to identifying "reliable partners" whose production "should be considered equivalent to the content of goods of European origin."
Whether British firms remain inside or outside this club, time will tell, the publication notes.
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