Following the official presentation by the European Commission of the Industrial Acceleration Act (IAA), the British manufacturers' organization Make UK assessed the potential implications of this legislation for future trade between the United Kingdom and the European Union.
This proposal will now be subjected to a thorough review by the European Parliament and the Council of the European Union, which have the right to amend, approve or reject elements of the draft law. The Regulation can be adopted only after the European Commission, Parliament and the Council have agreed on a common final text.
Key provisions are expected to change during the negotiations
The proposal is expected to change significantly during the legislative review process. According to Make UK, some aspects of the bill may be reviewed during negotiations.
These include regulations governing foreign direct investment (FDI), in particular ownership thresholds, the definition of "strategic sectors" and rules related to global production capacity constraints.
Given the complexity and political sensitivity of the proposal, it is expected that the legislative process will take considerable time before the final version is adopted.
The UK seeks recognition as a reliable industrial partner
For the UK, maintaining active participation in legislative discussions will be important due to the high level of integration between the UK and EU industrial supply chains.
According to the current draft, the Law includes provisions allowing derogations for some bidders from third countries participating in procurement schemes. The UK automatically falls into this category of derogation, reflecting the close integration of the UK and EU industrial supply chains. Industry representatives stressed the importance of ensuring that the UK continues to be seen as a reliable economic partner within the framework of the Law.
Make UK calls for continued dialogue with the EU
Make UK has stated that it will support the UK government in its ongoing dialogue with the European Commission, working with industry stakeholders to monitor developments.
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