Prime Minister Andy Burnham has issued a stark warning that proposed European Union industrial rules aimed at shielding the bloc from Chinese competition could inflict significant “collateral damage” on the UK economy, ahead of a crucial meeting with European Commission President Ursula von der Leyen in New York.
The proposed framework, formally known as the Industrial Accelerator Act (IAA) or the “Made in Europe” scheme, is designed to protect EU manufacturers by granting companies within the bloc priority access to public contracts and state subsidies. However, the UK government fears the measures will severely disrupt deeply integrated British supply chains, particularly in the automotive and steel sectors.
Speaking to reporters aboard his flight to the United Nations General Assembly, Burnham emphasized that London is actively lobbying member states to recognize the shared economic vulnerabilities between the UK and the EU.
“We are making the argument ‘we are not your enemies here… we are not the problem’,” Burnham stated. “Made in Europe is dealing with a different problem. We are making the argument that ‘let’s avoid collateral damage’.”
The diplomatic friction over the IAA has reportedly contributed to further delays in this year’s planned EU-UK summit, an event already postponed following the unexpected resignation of former Prime Minister Sir Keir Starmer in July. Despite the tensions, Burnham noted that the EU’s own automotive industry has advocated for the UK’s inclusion in the scheme to prevent severe disruptions to cross-border manufacturing.
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Beyond the immediate trade dispute, Burnham used the platform to reflect on the broader geopolitical landscape a decade after the Brexit vote. He cautioned that the UK must remain vigilant against foreign interference, noting that “turbulence comes when outside actors seek to manipulate, to distort facts, influence the British democratic process.”
When pressed on whether Labour would commit to rejoining the EU in its next general election manifesto, Burnham deftly sidestepped a definitive answer, framing the issue as one “for another day.” He stressed that his administration’s immediate priority is to build upon the foundational work of his predecessor to reach practical, economy-boosting agreements, including ongoing discussions around youth mobility.
“The doors are open, but it’s very much up to the UK public to identify and decide on its level of ambition when it comes to deepening cooperation with the EU,” noted Jukka Salovaara, the EU’s new ambassador to the UK, when asked about the possibility of the UK eventually seeking associate membership, a status recently floated for Canada, but which Burnham confirmed is not currently on the table for Britain.
As Burnham prepares to face von der Leyen on the sidelines of the UN summit, the stakes are clear. The Prime Minister must navigate a delicate diplomatic tightrope: protecting British industries from the unintended fallout of Europe’s protectionist turn, while simultaneously proving that the UK remains a constructive, indispensable partner on the continent’s doorstep.
Promise Idoko is Junior Reporter working with moderncrux He covers global politics and international affairs. Based in Nigeria,
