Germany to relay Asian trade concerns over EU industrial policy to Brussels

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Germany to relay Asian trade concerns

Highlights

Asian partners Japan, Singapore, and South Korea voiced concerns that the EU's 'Made in Europe' Industrial Accelerator Act could introduce new trade barriers.
Friedrich Merz will relay Asian countries' objections to the proposed EU policy in Brussels, emphasizing the need for Europe to remain open to trade.
The Industrial Accelerator Act aims to boost European manufacturing and independence from China, but EU approval and final text remain pending until next year.

Asian objections to EU industry plans

As reported by Reuters, Merz says key Asian partners have raised fears that the EU's "Made in Europe" initiatives could amount to a new form of European protectionism during his week-long trip through Japan, Singapore and South Korea.

Speaking in South Korea, the final stop of the trip, Merz says he hears the same concern in all three countries about the proposed Industrial Accelerator Act. The measure is intended to strengthen the bloc's industrial base by encouraging more manufacturing and sourcing within Europe, but non-European countries worry it could create fresh barriers to trade.

Merz says he takes those concerns very seriously and will carry them back not only to Berlin but also to Brussels. He adds that German and European products can succeed in Asian markets only if the bloc remains open to trade.

Broader trade and security implications

The proposal sits within wider EU efforts to help local industry compete with overseas rivals that do not face Europe's stricter regulations and higher energy costs. It also forms part of the bloc's attempt to reduce reliance on China, though EU governments and the European Parliament still have to agree on a final text, with approval expected next year.

Merz is also using the trip to promote closer cooperation among what he calls like-minded middle powers as a counterweight to the economic and trade policies of the U.S. and China. He says Washington is shifting its foreign and foreign economic policy and redefining its interests, and argues that Europe must respond in kind, a logic he says also applies to defence cooperation with regional partners.

In our earlier coverage of the WTO’s warning about lasting trade disruption, we explained how wars and tariff shocks are pushing companies to redesign supply chains and shipping routes for resilience rather than cost. The WTO also flagged a tilt toward more regional trade and a more fragmented global trading environment, even as AI-related demand helps support overall trade growth forecasts.

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