UK's Burnham wants to work with EU on 'Made in Europe' plan

By Elizabeth Piper and Alistair Smout

NEW YORK/LONDON, Sept 22 (Reuters) - Prime Minister Andy Burnham said he would argue for Britain to be a "trusted partner" to the European Union's "Made in Europe" scheme, saying they should not be pitted as enemies on a policy that has the potential to hammer the UK's car industry. 

The Made in Europe policy aims to curb reliance on Chinese components by prioritising European-made goods – a worry for the British auto industry which feeds parts into EU supply chains and sells cars across the bloc.

Travelling to New York for his first United Nations General Assembly as prime minister, Burnham told reporters he believed there was support for Britain to have access to the scheme.

"Europe's argument is not with us. We both suffer the same effects as other countries, particularly steel," he said on the flight to New York on Monday, where he is expected to meet European Commission President Ursula von der Leyen.

Britain has argued that the "Made in Europe" plan could impact supply chains and create unnecessary trade barriers between it and some member countries, with Burnham urging the two sides to avoid further "collateral damage".

He is also anxious not to miss out on another scheme after talks to join the EU's SAFE defence fund broke down.

"We are making the argument: we are not your enemies here... we are not the problem," Burnham said of the scheme. "Let's work towards a trusted partner approach that doesn't cause a problem where there wasn't a problem and where we have common cause."

CAR TRADE WORTH €80 BILLION 

French junior industry minister Sebastien Martin said that while the EU could consider enhanced economic co-operation with some partners, a country could not leave the bloc as Britain did and "expect exactly the same rights as those enjoyed from within".

"That does not preclude an intelligent dialogue with our British friends  — given the close, integrated value chains linking the European continent and the United Kingdom," he told reporters on the sidelines of a conference about Made in Europe.

"But our discussions will take place on the basis of the Europe of the 27 (EU members)."

The Society of Motor Manufacturers and Traders on Tuesday said Britain's exclusion from the EU's proposed "Made in Europe" provisions would put its automotive industry in jeopardy and threaten its contribution to the EU's economy.

The SMMT said the UK-EU trading relationship in the sector was worth €80 billion a year, and interdependence in supply chains meant that carmakers in Europe would also be damaged if Britain was excluded from the policy.

SMMT Chief Executive Mike Hawes said it would be an own goal, "weakening competitiveness, reducing scale and limiting consumer choice".

Asked about the SMMT's warning, a government spokesperson said there would be discussions to "find solutions that benefit the industry across the continent".

Britain's uncertain status within the scheme is just the latest area of contention since it voted to quit the EU in 2016.

For supporters of Brexit, a Britain outside the EU would be free to trade with faster growing countries around the world. 

But since then, the advance of China, the unpredictability of Donald Trump's US and rapid technological innovation have put that decision into sharper relief.   

Burnham has said he wants to deepen relations with the EU after his predecessor Keir Starmer reset ties following years of distrust. A UK-EU summit was delayed by that change in leader in July, but London hopes it will take place this year.    

(Reporting by Elizabeth Piper and Alistair Smout, additional reporting by Dominique Patton in Paris; Editing by Kate Holton, Andrew Cawthorne and Gareth Jones)