Could new ‘Made in Europe’ procurement rules affect UK exporters?

15 September 2026

UK businesses competing for public-sector contracts in the European Union could face changes to the way bids are assessed under new procurement rules proposed by the European Commission.

Published on 9 September 2026, the proposed Public Procurement Act would introduce new ‘Made in Europe’ criteria as part of a wider overhaul of EU procurement rules.

For UK exporters supplying European public bodies, the proposals are worth watching. While they do not mean UK suppliers will automatically be excluded from EU contracts, they could make European origin and supply-chain resilience more important considerations in some procurement decisions.

What is changing?

Public procurement represents a significant market for businesses supplying governments, local authorities and other public-sector organisations. Across the EU, more than 250,000 public authorities spend around €2.6 trillion a year, equivalent to approximately 15% of EU GDP.

Under the Commission's proposals, procurement would increasingly be used not only to obtain value for money but also to support wider European economic priorities.

The new framework is intended to strengthen the EU's economic security, sovereignty and resilience, including through European preference criteria. It would also give greater prominence to environmental, social, innovation and security considerations when contracts are awarded.

The Commission says the new European preference approach would operate in line with the EU's international legal commitments.

What does ‘Made in Europe’ mean?

The principle is intended to allow European preference criteria to be used in public procurement, supporting the EU's wider objective of strengthening European production and reducing strategic dependencies.

It forms part of a broader move towards using procurement policy to support European industry, supply-chain resilience and economic security.

However, this does not necessarily mean that a UK supplier would be treated in the same way as a supplier from a country without reciprocal procurement arrangements with the EU.

That distinction is particularly important for UK businesses.

What could it mean for UK exporters?

Since leaving the EU, UK businesses are third-country suppliers when bidding for EU public contracts.

However, the UK and EU are both parties to the World Trade Organization's Agreement on Government Procurement (GPA). The agreement provides access to specified public procurement markets between participating economies, subject to the coverage and conditions set out in each party's commitments.

The European Commission has also made clear that its proposed European preference criteria are intended to operate in accordance with the EU's international commitments.

This distinction matters.

Rather than assuming UK businesses will lose access to European tenders, exporters should watch how the final rules define European preference, which contracts and sectors are affected and how suppliers from countries with reciprocal procurement commitments are treated.

Depending on the final legislation, businesses may increasingly need to understand not only whether they are eligible to bid but also how the origin of their products, components and supply chains could influence the assessment of a tender.

What should businesses watch?

For UK companies already supplying European public authorities – or hoping to do so – it would be sensible to monitor:

✔ Which sectors become subject to European preference criteria.

✔ How those criteria are applied when contracts are awarded.

✔ How UK goods, services and suppliers are treated under existing international procurement commitments.

✔ Whether product or component origin becomes relevant to individual tenders.

✔ Whether supply-chain resilience, environmental performance or other strategic criteria affect how bids are evaluated.

The proposals could be particularly relevant to businesses supplying strategically important industrial products, technology, infrastructure and other goods and services purchased by the public sector.

The rules have not changed yet

Importantly, the Public Procurement Act is currently a European Commission proposal. It will need to go through the EU legislative process before becoming law, and its provisions could change during negotiations.

UK businesses therefore do not need to change their procurement strategies immediately.

But for exporters for whom European public-sector contracts represent an important market, the direction of travel is worth understanding.

The EU is increasingly looking at public spending as a way to strengthen European industry, improve supply-chain resilience and support strategically important sectors. At the same time, it has said the new approach will respect its international commitments.

For UK exporters, the important question will therefore be not simply whether ‘Made in Europe’ preferences are introduced, but where they apply and whether existing UK access to EU procurement markets protects their ability to compete on equal terms.

By Carla Assunção, Chamber International

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