On September 15, as reported by the Financial Times, the UK, Japan, and Turkey are actively pursuing an agreement that would allow their domestic automotive manufacturing sectors to be encompassed within the EU's 'Made in Europe' regulations. Nevertheless, apprehensions have arisen regarding the potential negative repercussions of the EU's novel industrial policy on employment rates and automotive production capabilities in these countries. The EU intends to give precedence to public procurement and subsidies in sectors such as electric vehicles and clean energy for products produced within Europe. This move signifies a transition in the EU's industrial policy from a free-trade stance to a more protectionist one. While nations that have trade agreements with the EU are eligible to partake in specific facets of the 'Made in Europe' initiative, vehicles must be assembled within the EU's borders to qualify for support. Moreover, certain electric vehicle subsidies and fleet policies exclude trade partners, which could potentially influence the operations of non-EU automotive manufacturers.
