Japanese ambassador expresses concerns over EU industrial acceleration bill, calls for elimination of disadvantages for non-regional partners
Quick Look
Ambassador Kazutoshi Aikawa of Japan's Permanent Mission to the EU, in an article for the Financial Times, questioned whether the EU's current Industrial Acceleration Bill, which would require public support for EVs for company cars to use EU-made parts, complies with WTO rules, and called for the EU to avoid treating reliable partners outside the region at a disadvantage, such as Japan.
AI-generated summary
Why It Matters
The EU is currently formulating an industrial acceleration bill to strengthen industrial competitiveness. A proposal is being considered that would require public support for EVs for company cars to use EU-made parts.
[Brussels Current Affairs] Ambassador Kazutoshi Aikawa of the Permanent Mission of Japan to the European Union (EU), in an article in the Financial Times published on the 16th, called for the EU to not treat "trusted partners" outside the region disadvantageously, such as Japan, with regard to the "Industrial Acceleration Act (IAA)" that the EU is currently formulating. The government questioned the suitability of a proposal to make public support for electric vehicles (EVs) for company cars conditional on the use of EU-made parts, etc. with World Trade Organization (WTO) rules.
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Mr. Aikawa pointed out that current automobile production consists of a complex supply chain that spans national borders, including research and development, parts procurement, and assembly. European companies could also be affected if EU-made parts are sent outside the EU and then returned to the EU as finished products and are no longer considered EU-made.
What to Watch
AI outlook — possibilities, not facts
The EU may review the terms of the Industrial Acceleration Bill after discussions over WTO compatibility
Possible · Within months
Open Questions
- How will EU-made parts be defined?
- What is the specific extent of the impact on companies outside the region?
- How is the risk of filing a lawsuit with the WTO assessed?
