EU CAR RULES THREATEN TO EXCLUDE UK MANUFACTURERS

The European Automobile Manufacturers Association has urged the EU to exempt the UK from new "Made in Europe" rules that risk preventing British car manufacturers from selling into their largest export market. The association made the call on Wednesday, stating that the regulations threaten to shut out UK producers. The new rules have been characterised by the industry body as potentially damaging to cross-border trade in the automotive sector.

The EU introduced the "Made in Europe" regulations as part of new industrial policy. The rules set requirements for products sold within EU markets, including automotive goods. The regulations also affect Turkey and Morocco, prompting the European Automobile Manufacturers Association to call for all three territories to receive exemptions from the framework.

The association's intervention reflects concern within the European car industry about the unintended consequences of the new rules. British car manufacturers currently depend substantially on EU markets for export sales. The European Automobile Manufacturers Association has signalled that the regulations, if applied without modification, could fundamentally reshape trade patterns in the sector and create barriers for established manufacturers based outside the EU.