EU risks billions in economic loss by excluding the U.K. from 'Made in Europe' trade strategy
The European Union could lose approximately €24 billion if it excludes the United Kingdom from its proposed “Made in Europe” trade strategy for non-EU nations, according to data commissioned by the Society of Motor Manufacturers and Traders (SMMT). The SMMT warns that excluding the U.K. would disrupt a vital trading relationship between both regions, which is valued at €80 billion annually. This exclusion could threaten 250,000 jobs across Europe and reduce demand for UK-built vehicles in its largest market. The impact on key EU economies like Germany, France, Italy, and Spain could be significant, with GDP losses estimated between €1.5 billion to €6.3 billion each. Central and Eastern European countries such as Poland and Romania would also face job losses due to the U.K.'s automotive production ties. The SMMT argues that excluding the UK from trade regulations under the Industrial Accelerator Act (IAA) could undermine Europe’s industrial ambitions by reducing competitiveness, scale, and consumer choice.
Topics: automotive industry economic impact EU trade policy UK-EU relations