UK minister warns against exclusion from EU manufacturing preference scheme

Britain’s minister for European relations, Hamish Falconer, has warned that excluding the UK from the EU’s proposed manufacturing preference scheme could weaken industry on both sides. Speaking in Strasbourg after talks with EU counterparts, he argued that keeping supply chains open served their mutual interests.

The European Commission’s proposed Industrial Accelerator Act would give European manufacturers preferential treatment in public procurement to protect domestic industry against unfair overseas competition. However, there is disagreement over which businesses should qualify as European and whether companies outside the EU should receive equal treatment.

Prime Minister Andy Burnham’s government has prioritised securing UK participation. Falconer said European industries had been particularly active in lobbying him, arguing that Britain and the EU shared an industrial base that would suffer if divided. His Strasbourg meetings included Trade Commissioner Maroš Šefčovic.

Burnham raised the issue with European Commission President Ursula von der Leyen at the UN General Assembly in New York. France favours tighter eligibility conditions, while Germany is viewed as more receptive to including EU trading partners that provide reciprocal access for European companies.

EU sources said negotiations over British participation had gathered pace since Burnham became prime minister in July. They said it remained uncertain whether a deal could advance before an EU-UK summit expected by year-end.

Falconer also said the government wanted an ambitious summit package to strengthen relations. An earlier summit planned for July was cancelled after former prime minister Keir Starmer announced his resignation in June, disrupting intended agreements covering agri-food trade, electricity markets and youth exchanges.