Preferential policies for ``Made in Europe'' cars will no longer apply to Japan; France and Germany adjust to face export headwinds - British newspaper

[Brussels Current Affairs] The British newspaper Financial Times (FT) reported on the 15th that France and Germany are coordinating to exclude vehicles manufactured in Japan and other countries from the preferential treatment measures being considered by the European Union (EU) for "Made in Europe" cars. France and Germany have finalized a draft agreement. There is a risk that this will be a headwind for exports from Japan.

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Meanwhile, under the draft agreement, imports from some European countries outside the EU, such as the UK, will be subject to preferential treatment, subject to conditions.

In March of this year, the European Commission proposed an ``industrial acceleration law'' that would give preferential treatment to European products in public procurement and subsidies. The idea is to give preferential treatment to European-made vehicles in purchasing support and public procurement for electric vehicles (EVs) and plug-in hybrid vehicles (PHVs), and if the agreement between France and Germany goes as planned, vehicles manufactured in countries that are not eligible for preferential treatment, such as Japan, South Korea, and Turkey, may be treated disadvantageously.

Although Toyota Motor Corporation and Suzuki Motor Corporation have factories in the EU, vehicles that do not meet standards such as the proportion of European parts procured may not be eligible for preferential treatment.