The recommendation from Brussels follows weeks of lobbying by British officials seeking the same treatment for UK products as goods manufactured in EU member states, the newspaper reported, citing two people familiar with the discussions, Anadolu Agency reported.
“A customs union would solve most of the problems of ‘made in Europe’ … and also the question of tariff differences,” an EU official was quoted as saying, referring to concerns that Chinese manufacturers could potentially avoid EU tariffs by routing vehicles through the UK.
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The European Commission’s proposed “Made in Europe” policy, part of its Industrial Accelerator Act, would give products manufactured in Europe, including cars, steel and green technologies, preferential treatment in public procurement.
The discussions highlight broader differences between London and Brussels over trade arrangements following the UK’s departure from the EU.
UK Prime Minister Andy Burnham has previously said his government would maintain the Labour Party’s election red lines, which rule out joining a customs union or the EU single market.
An EU official said concerns in Brussels had shifted from fears of Britain becoming a highly competitive, lightly regulated economy on the bloc’s doorstep to concerns that the UK could become a route for Chinese goods into the European market.
“There is a cruel irony in how European concerns about Britain have evolved: from fears of a ‘Singapore-on-Thames’ to fears of a ‘Turkey-across-the-Channel’,” the official said.
“The concern today is no longer a hyper-competitive, globalised Britain on Europe’s doorstep, but a Britain that could become a backdoor into the European market for Chinese goods,” the official added.
A senior British official acknowledged the political difficulty of aligning UK trade policy with the EU while maintaining the government’s existing commitments.
“It’s hard to argue we want to be on the inside of ‘fortress Europe’ when the other side can point at tariff policies that are arguably undermining the rising walls of the fortress,” the official said.
The discussions come as the EU considers measures designed to strengthen European production and give locally manufactured goods an advantage in public procurement, while Britain seeks to protect access for UK exports to the European market.
