Is “Made in Europe” also made in Western Norway?

Photo: Istock.com/chriss_ns

European industry is struggling in competition with China, and the EU wants to protect it better. Will Norwegian business end up on the inside or the outside?

When the European Commission presented its proposal for the Industrial Accelerator Act (IAA) this spring, Norwegian players could breathe a sigh of relief. The understanding was that the new “Made in Europe” rules were defined in such a way that EEA countries would be included in any measures to protect European businesses. Now the discussion in parliament raises new questions – both about who will be included, and whether there will be a powerful new tool for protection at all.

The proposal for a new industrial policy for the EU opened up the possibility of using both public procurement and state aid in new ways. By requiring European content and low-emission production, large markets could in practice be reserved for European suppliers. The growing trade deficit with China has led the European Commission to move in a more protectionist direction, in line with the death of industry in important member states.

The Commission's proposal is now being hotly debated, both among the member states and in the European Parliament. The debate in the latter body is creating new uncertainty about what should be considered "European" in this context. The rapporteur in the industry committee, the French liberal Christophe Grudler, has stated that the Commission's proposal is so far-reaching that it will not be Made in the EU , but "made everywhere". Together with the two other parliamentarians responsible for the matter in the committee, he has proposed a more restrictive version, where the starting point should be the EU's 27 member states, and other countries can join if they meet certain criteria.

On the other hand, there has been a backlash in the parliament, from more free-trade-oriented members. 23 parliamentarians from the conservative EPP have signed a motion to scrap the entire IAA. They blame the Commission for steering the EU straight into new trade conflicts with instruments like "Made in Europe".

A similar disagreement exists between the member states. There they discuss both which industries should be included and which countries should be on the inside. Member states such as Germany and Sweden, traditional champions of free trade, want a broad definition of European content and openness to the EU's trading partners around the world. It is true that these countries have also moved. Previously, they would hardly have been in favor of European preference at all, but German industry in particular has been hit hard by Chinese competition. However, there is still a significant gap to the EU countries that want a tighter policy, with France at the forefront.

Parliament is scheduled to take a final position on the IAA just before Christmas.