"The very successful British microlight sector" does seem to be a thing of the past to me - I cannot remember any Brits design on the continent since the CFM Shadow. OTOH lots of C42's and Eurofoxen in the Isles.
On a sidenote, not directly related: Brussels is full of UK expats working as free-lance IT'ers, there must be a few thousands according to some. I see these people massively giving up UK nationality, most changing to the BE register but some to France and other continental countries. More losses for the Royal Treasury!
As for Islanders being manufactured in Romania: yes, but so were BAC 111's, and I even know of a Hungarian microlight builder who outsources production to Romania for even lower cost. And C42's are being produced in Ukraine. Race to the bottom, anyone?