Japan's steel industry has urged the European Union to amend its proposed Industrial Accelerator Act (IAA), warning that low-carbon steel and EU-origin requirements could restrict Japanese exports and disrupt supply chains serving European manufacturers.
In a joint statement dated November 10, five Japanese steel associations, including the Japan Iron and Steel Federation, called for equal treatment for Japanese products and criteria allowing Japan's GX Steel to qualify as low-carbon steel.
Proposed requirements raise market access concerns
According to the statement, the European Commission's draft, published in March 2026, would introduce minimum requirements for low-carbon and EU-origin products in targeted industries, including a minimum 25 percent share of low-carbon steel.
A European Parliament draft report published in September proposed increasing the mandatory low-carbon steel share from 25 percent in 2029 to 50 percent in 2036. It would also require EU-origin steel, defined as steel melted and poured within the bloc, with at least 75 percent of its primary iron input reduced within the EU.
Direct and indirect steel exports at risk
The industry warned that the legislation could affect Japan's approximately 700,000 mt of annual direct steel exports to the EU, alongside approximately 1.7 million mt exported indirectly through automobiles, industrial machinery and electrical machinery.
The associations said restrictions could weaken Japanese steelmakers' production and revenue base while disrupting supplies to European customers.
Industry seeks coordinated action on IAA and steel quotas
The associations also warned that the IAA could undermine Japan's ongoing negotiations over EU steel tariff quotas. According to their statement, the EU's successor to its steel safeguard measures, introduced in July, reduced quota volumes and raised the tariff rate to 50 percent.
They argued that securing quotas would offer limited benefit if the IAA prevented Japanese steel from accessing the market. Accordingly, they urged EU institutions to recognize Japan as a like-minded partner and amend the proposal, while calling on the Japanese government to pursue IAA negotiations alongside quota discussions.
