A draft of the Industrial Accelerator Act, obtained by POLITICO last week, states that “Made in EU” should refer to “content originating from the European Union and the European Economic Area,” meaning from Norway, Iceland and Liechtenstein. However, the EU executive also wants to identify “trusted partners” whose manufacturing “should be deemed equivalent to Union origin content.”

Commission departments have different views on how to define trusted partners, mirroring the wider debate in EU capitals.

DG TRADE leans towards including all countries with which the EU has an FTA, while DG GROW — Séjourné’s department — wants a more restrictive criterion that would only award a “Made in Europe” label to countries within the EEA, a person briefed on the talks told POLITICO. 

“I’m confident we will eventually get there, accommodating the various opinions while maintaining the IAA’s high degree of ambition,” said Stéphane Séjourné. | Pool photo by Ken Ishii via Getty Images

This divergence also reflects differences in the German and French positions. For France, the IAA isn’t about penalizing foreign companies but rather boosting industrial production on EU soil. By contrast, the German Ministry of Economic Affairs argues that trading partners shouldn’t be hindered by the Made in EU criteria. 

The plan has also caused jitters in the U.K., which is sending its top trade ministers across the channel on a “Made in Europe” charm offensive next month to head off the threat that British manufacturers will be shut out of EU public procurement.

Séjourné played down the concerns.