Committee publication · Correspondence · 19 May 2026
Letter from the Minister of State for Trade relating to further information requested following the Committee's evidence session on 9 March on trade with the US and EU, 8 May 2026
From: Business and Trade Committee
Inquiry: UK trade with the EU
Summary
Minister of State for Trade Sir Chris Bryant responds to the Business and Trade Committee's request for further detail following a 9 March evidence session on US and EU trade. He provides an account of engagements with EU counterparts on the Made in Europe campaign, details concerns about the Industrial Accelerator Act's automotive provisions, clarifies the status of UK-EU SAFE defence negotiations, and updates on the paused Technology Prosperity Deal and finalised UK-US pharmaceutical arrangement.
Key findings
- Minister conducted extensive diplomatic engagements across EU institutions (European Parliament, Commission, Member States) from February to March 2026 to advocate for UK inclusion in Made in Europe procurement rules, with some positive response from Dutch counterparts on a more inclusive 'Made with Europe' approach.
- Industrial Accelerator Act poses significant risk to UK automotive sector: assembly requirements for battery electric vehicles and plug-in hybrids exclude UK-assembled vehicles from corporate fleet subsidies (60% of EU new car market) and access to 'Super Credits' for CO2 compliance.
- UK-EU SAFE (defence trade) negotiations concluded unsuccessfully; UK unable to reach agreement in national interest and unable to disclose specific entry offers. UK firms may participate on third-country terms.
- US Technology Prosperity Deal remains paused; formal Ministerial Working Group will convene only when cooperation resumes in full, though civil nuclear pillar reopened in January 2026.
- UK-US pharmaceutical pricing and tariffs arrangement text finalised and published 2 April 2026.
Tone
FactualTopics
Key actors
Sir Chris Bryant, Liam Byrne, Maroš Šefčovič, Roberta Metsola, Teresa Ribera, Nicolas Forissier, Sjoerdsma
Notable line
“… we are concerned about the automotive provisions of the IAA as currently drafted: • Under the IAA proposal …”
Key Quotes
“We welcome the fact that UK goods will be equivalent to "Union origin" by default across a range of sectors. This rightly recognises our close relationship, as economic and security partners.”
“Under the IAA proposal, new battery electric-vehicles (BEV) and plug-in hybrid vehi- cles (PHEV) must be assembled within the European Union to qualify for corporate fleet subsidies.”
“… the US paused the TPD at the end of last year. In January, we reopened collaboration on the civil nuclear pillar. The formal Ministerial Working Group will meet when cooperation on the deal is resumed in full.”
“UK – EU SAFE negotiations concluded last year. The UKG engaged constructively and in good faith throughout, but, unfortunately, we were not able to reach an agreement that was in the UK's national interest.”
Source · parliament.uk record ↗