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French liberal MEP Christophe Grudler told Euronews the Commission’s proposed European preference, once adopted, covering public procurement in strategic sectors such as clean tech, cars and energy-intensive industries (aluminium and steel) should be limited to a core group of non-EU countries.
The “Made in Europe” provisions of the so-called “Industrial Accelerator Act” have triggered a fierce political battle between supporters, led by Germany and Nordic countries, of a broad definition including “like-minded” partners, and those, led by France, pushing for a narrower approach.
In its proposal unveiled on 4 March, the Commission leaned towards the broader interpretation.
“The Commission’s option is very poor. It reflects a completely outdated view of trade policy,” Grudler said, adding, “When the Americans introduced the Buy American Act, they didn’t worry about whether it would strain ties with Europe. At some point, we need to stop being naive.”
The MEP is set to be one of the lead negotiators on the proposed new rulesin the European Parliament as talks begin shortly.
The European preference aims to counter foreign competition, notably from the US and China. The Commission proposes excluding non-EU countries depending on how open they are to the EU taking part in their procurement markets as well as existing trade agreements.
Geography should prevail, Grudler said
But Grudler argues geography should be the guiding principle, limiting “Made in Europe” to countries closest to the EU — first and foremost the European Economic Area: Iceland, Liechtenstein and Norway.
Switzerland could also be “a good candidate”, he said.
“Switzerland has had a public procurement agreement since 1989. It is a bilateral agreement stating that all European companies have access to the Swiss public procurement market, and that all Swiss companies have access to the European public procurement market. It is therefore a rather good candidate.”
The UK could also be considered to some extent, but “conditions will need to be examined” following Brexit, he added. “There is also a point where Europe has to make sure it comes out financially ahead.”
He wants the law to send “a strong signal” to investors backing key EU industries, “particularly energy-intensive sectors and clean technologies.”
“It is another step in Europe’s resilience against unfair competition from other continents.”
However China has voiced strong opposition to the Commission proposal, seen in Beijing as restricting its access to EU procurement and investment.
“This legislation is Europe standing firm for its strategic industries,” Grudler said.
“China has overcapacities in cars or in steel. They are relying on the naivety of Europeans to do business, to generate double-digit growth again, and then to invest in research and development and get ahead on everything, all the while cheating through direct subsidies to destroy our industries.”