The Japanese steel industry has called on the European Union to amend the proposed Industrial Accelerator Act (IAA).
A joint statement on the matter was issued by five Japanese industry associations representing various segments of the steel industry. They warn that requirements for the use of low-carbon steel and products of European origin could restrict Japanese exports and disrupt supply chains for European manufacturers.
According to the statement, depending on the final content of the legislation, in addition to the direct impact on supplies of steel products from Japan to the EU (about 700,000 tonnes per year), a significant decline in indirect exports through cars, industrial equipment and electrical engineering products is also expected. In addition, in July this year the European Union introduced new safeguard measures for steel products in general, which led to a significant reduction in the tariff quota for Japan.
In view of this, the Japanese steel industry is calling on the EU to treat Japan as a like-minded partner that shares the bloc’s values. In particular, the country’s steelmakers are seeking amendments to the IAA that would guarantee a level playing field for Japanese products, as well as criteria that would allow Japanese GX Steel to be recognized as low-carbon.
The industry associations also warn that the IAA could undermine the results of Japan’s ongoing negotiations with the EU on tariff quotas for steel products.
According to the EC statement of March 2026, the draft IAA provides for minimum requirements for the use of low-carbon products and goods of European origin in certain industries. In September, the European Parliament published a draft report that provides for tightening these requirements.
As a reminder, in September this year, the industry association SMMT (Society of Motor Manufacturers and Traders) stated that excluding the UK from the EU’s proposed Made in Europe provisions would put the British automotive industry at a competitive disadvantage.
