There is an increasing consideration in the EU to implement local content requirements—mandatory local value creation shares. This has consequences for trade, competition, and Europe's position.
For a long time, they were seen as instruments of market protection in the European Union, but due to security, industrial, and trade policy considerations, localisation obligations are increasingly playing a role in current EU initiatives or in the debate on European product regulations.
For example, "Buy European" requirements are a central component of the planned Industrial Accelerator Act (IAA), which the European Commission presented on 4 March: In addition to speeding up approval procedures and specifically promoting strategic industries, the bill aims to strengthen domestic production through localisation and preference rules. According to the German Chamber of Commerce and Industry (DIHK), this poses the risk of new bureaucratic burdens, as well as trade policy risks, and could create additional hurdles for businesses.
The DIHK considers local content requirements a last resort at best and instead advocates improving conditions in the European single market. In this dossier, we have compiled relevant content on the topic for you.
- Relevant in topic:
- Internationaler Handel
- Key areas:
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- Außenwirtschaft
Anprechpartner
Dr. Susanne Gewinnus
Director Industry and Research Policy
Klemens Kober
Director Trade Policy, EU Customs, Transatlantic Relations
Thorben Petri
Director European Economic Policy