Prime minister Andy Burnham is today meeting with French President Emmanuel Macron at 10 Downing Street, with the UK-EU reset set to be a key talking point.
On Monday, in his first Commons appearance since becoming the UK’s new leader, Burnham said the UK’s departure from the bloc had led to a “decade of low growth and stalled regeneration”.
Also today in trade, there are reminders about an ongoing consultation on customs modernisation and upcoming changes to vaping duties.
‘Made in Europe’ scheme concerns Burnham
Prime minister Burnham told MPs yesterday that the EU’s proposed ‘Made in Europe’ procurement scheme “could pose significant problems for British steel”.
The Labour leader is set to meet French counterpart Macron today, with the UK-EU ‘reset’ set to be a key talking point. The FT reports that Burnham is going to demand that the UK is incorporated in ‘Made in Europe’ as part of this reset, though it’s unknown whether this issue will come up in today’s bilateral meeting.
France is thought to be one of the main objectors to current UK proposals on membership of the scheme, which is being introduced as part of Brussels’ Industrial Accelerator Act (IAA).
“We are approaching a UK-EU summit in the next couple of months,” Burnham said to MPs yesterday.
“It is imperative, I believe, that we work hard to get a good deal for British steel and for British farming.”
The prime minister has said that he will remain committed to the Labour Party’s 2024 manifesto pledges to not rejoin the EU customs union and single market. He will continue the previous administration’s negotiations for a series of agreements that will remove trade frictions and strengthen ties with the EU, including a Common Sanitary and Phytosanitary (SPS) Area for agrifoods.
While the SPS agreement is thought to be close, there’s been little progress on UK participation in ‘Made in Europe’. The UK is trying to gain exemptions from the “buy European” rules within the scheme, but an EU official told the FT:
“The British are seeking trade-offs with half-baked ideas. I do not think it will fly... We do not yet know what the member states will agree between themselves. So how can you include it in the summit?”
Despite the debate over UK participation, support for the IAA is thought to be strengthening within European industry due to a recent surge in Chinese imports, Politico reports.
Reminder 1: Customs modernisation survey
Traders have been reminded that they have an opportunity to share their views on HMRC’s efforts to modernise the UK customs regime and its proposed introduction of mandatory registrations for customs intermediaries.
The Chartered Institute will itself be responding to the government’s ongoing call for evidence on the modernisation programme and consultation on the registrations. It is currently running a survey to gather the views of its members and the wider customs community, which you can complete here.
The survey closes on Sunday this week and should take less than 20 minutes to complete.
Reminder 2: Vaping duties
HMRC’s Joint Customs Consultative Committee (JCCC) has written to industry representatives with a reminder that a new Vaping Products Duty will apply to all vaping liquids manufactured in or imported into the UK from 1 October 2026, regardless of whether they contain nicotine.
Businesses will need to meet new vaping duty stamp requirements as part of the changes.
“Businesses that require approval must not carry out a regulated activity from 1 October 2026 unless HMRC has granted that approval,” the JCCC secretariat wrote.
For more information about what the new vaping duties entail, Chartered Institute members can read this exclusive guidance.
Also in the trade news today
- London mayor, Sir Sadiq Khan, has formally opposed the third runway plans for Heathrow, saying they threaten environmental targets and transport networks, the BBC reports
- Chancellor John Healey will outline the government’s vision for growth in a set-piece speech next week, according to Politico
- Business secretary Jonathan Reynolds has ruled out an ‘exit tax’ on companies that leave the country after spinning out of British universities, the FT reports
Yesterday in trade
- A new report showed business support for a trio of trade strategies from the UK government
- The Chartered Institute unveiled an enhanced Business Membership package
You can read yesterday’s trade news here.
