British business minister Jonathan Reynolds said on Tuesday Britain and the European Union were "finding a way through" concerns over the bloc's proposed "Made in Europe" rules, a source of uncertainty for UK manufacturers and investors, Reuters reported on October 27.

Source: Reuters, Oct 27

Reynolds said "a lot of work" was under way between the two sides as businesses sought greater clarity over the proposals, which would favour European-made goods in public procurement, auctions and subsidy schemes covering sectors including electric vehicles, batteries and other clean technologies, Reuters reported. "I think we're finding a way through that," Reynolds told Sky News.

Made in EuropeEU proposal favouring European-made goods in procurement, auctions and subsidies
EVs, batteries, clean techSectors covered by the proposed rules
EU governments + ParliamentApproval still required for any final proposal

Why Britain's car industry is at the centre

The proposed rules pose a particular threat to Britain's car industry and form part of the EU's efforts to reduce reliance on cheap imports, particularly from China, Reuters reported. Reuters reported earlier this month that France and Germany were discussing a compromise that could allow Britain to be treated as a trusted partner under the scheme, if it agrees to align with the bloc on tariffs on China.

Any final proposal would require approval from EU governments and the European Parliament, Reuters said. The China-tariff condition has already drawn a sharp response: The Guardian, reported via Ford Authority on October 26, said Chinese officials were "firmly opposed to any discriminatory practice involving tariff hikes or restrictive measures on Chinese products" and had expressed serious concern to the UK side. Reynolds had earlier said UK trade decisions are based on the UK interest, not on another country asking for them, The Guardian reporting said.

Tuesday's remarks do not announce a deal. They signal, in the minister's own words, that work between London and Brussels is continuing and that he believes a way through the Made in Europe concerns is being found, while the formal EU approval process still lies ahead.