The European Union is reportedly considering delaying a "Brexit reset" deal with the United Kingdom until after the next general election, citing disagreements over trade policy. A key point of contention is a proposed "made in Europe" law, currently progressing through the European Parliament, which aims to protect continental manufacturing from global competition, notably from China.
The UK has expressed interest in being included in this scheme, which would grant European firms priority for public contracts and subsidies. However, concerns have been raised within the UK that such a move could disadvantage British industries, including the automotive and steel sectors, which have significant cross-border trade with the EU.
Reports suggest that the Labour party, if in government, has offered concessions to facilitate the deal. These reportedly include reducing tuition fees for EU students at UK universities to match domestic rates and lifting the cap on a youth mobility scheme to allow visa-free access to Britain for up to 100,000 individuals under 30.
However, the EU is understood to be demanding that these concessions be part of a broader agreement, while insisting that the UK cannot join the "made in Europe" scheme independently. This has led to a stalemate, with a summit originally scheduled for July now pushed back to at least November.
An EU diplomatic source indicated to the Financial Times that if a summit does not occur this year, the EU might prefer to wait for the outcome of the British election, which is anticipated in 2029. The source noted that a summit is typically necessary to generate the momentum required to resolve outstanding issues.
Earlier in September, Prime Minister Andy Burnham reportedly informed French President Emmanuel Macron that the "buy European" program could present "significant challenges" for UK industry. Burnham also stated to Members of Parliament that securing a favorable agreement for British steel and farming was imperative ahead of any UK-EU summit.
A UK government spokesperson affirmed the commitment to fostering a closer relationship with European partners. "We continue to engage with the EU on 'Made in Europe' and work together, as like-minded partners, to boost growth and open up trade," the spokesperson said.