German automotive supplier association ArGeZ has expressed support for the European Commission's proposed Industrial Accelerator Act (IAA), arguing that the initiative could strengthen Europe's industrial base, expand manufacturing capacity and accelerate decarbonization across strategic sectors.
According to the association, geopolitical uncertainty, growing supply chain dependencies and large-scale industrial policy programs in the US and China have increased the need for a more strategically focused European industrial policy. ArGeZ stated that European preference rules are justified, particularly where public funding is involved, provided that the measures remain appropriate and proportionate.
Chinese automotive component imports have doubled since 2019
ArGeZ highlighted the growing competitive pressure on European automotive suppliers, noting that EU imports of automotive components from China have doubled since 2019, while EU exports have recorded only limited growth. Against this backdrop, the association considers a European preference system necessary to safeguard the competitiveness of manufacturers operating within the EU and preserve industrial value creation.
Under the proposed IAA, public procurement and financial support would increasingly favor products manufactured in Europe and associated with lower carbon emissions.
'Made in Europe' rules could support strategic industries
According to ArGeZ, a “Made in Europe” approach could strengthen European value chains and employment while supporting the transition toward a climate-neutral economy and helping retain technological expertise within the EU. The association identified steel, aluminum, rubber, automotive manufacturing and future technologies as strategic sectors that could benefit from the proposed procurement criteria.
ArGeZ stressed that local content requirements should apply not only to finished goods but also to their components, allowing a greater proportion of industrial value creation to remain within Europe. While supporting European preference rules, ArGeZ warned that their implementation should not create excessive administrative burdens for manufacturers. The association called for realistic and achievable local content requirements and said digitalized supply chains could simplify compliance and documentation, particularly in complex industries such as automotive manufacturing.
Third-country content should not automatically qualify as EU origin
ArGeZ also addressed how EU origin should be determined under the proposed framework. According to the association, the existence of a free trade agreement, customs union or procurement agreement with the EU should not automatically mean that content originating in a third country is treated as equivalent to EU-produced material. Instead, such treatment should depend on clear and WTO-compliant conditions, including reciprocity and comparable carbon costs and sustainability standards.
