Japan Envoy Voices Concern over EU Industrial Bill

Brussels, Sept. 17 (Jiji Press)--The European Union should not disadvantage its trusted partners outside the region through its proposed Industrial Accelerator Act, Japanese Ambassador to the EU Kazutoshi Aikawa has said.

In his contribution to the British daily Financial Times, made public Wednesday, Aikawa questioned whether the act, which would require the use of EU-made parts for public aid for corporate-use electric vehicles, is consistent with World Trade Organization rules.

Automobile production requires "a network of suppliers across borders," and the research, development, parts procurement and assembly may all be conducted in different countries, he said.

Aikawa said that the proposed act could affect European companies themselves if EU-made components are sent outside the region and are later returned as finished products but fail to qualify as EU products.

Citing Japan's investment in France's rare earth refining project, Aikawa said the case is precisely "what resilient supply chains should be," combining European industrial capacity with trusted international investment, technology and long-term commitments.

[Copyright The Jiji Press, Ltd.]