Industrial Accelerator Act: A Turning Point for Trade

The European Union’s proposed Industrial Accelerator Act (IAA) represents a decisive step towards reinforcing Europe’s industrial base and advancing a renewed “Made in Europe” agenda. While aimed at boosting competitiveness and resilience, the Act will also have important consequences for global trade and value chains.

A New “Made in Europe” Industrial Policy

At its core, the IAA seeks to accelerate investment in strategic sectors such as clean technologies, advanced manufacturing, and critical raw materials. By simplifying permitting, mobilising finance, and supporting innovation, the EU is signalling a clear ambition: to bring more production, processing, and value creation back to Europe.This shift reflects growing concerns over geopolitical risks, supply chain disruptions, and over-reliance on third countries. A stronger European industrial base is increasingly seen as essential for both economic security and the green transition.

Trade Implications: Risks and Opportunities

The IAA is likely to reshape trade patterns. A stronger focus on European sourcing and trusted partners may reduce opportunities for some exporters, particularly where supply chains are re-shored or regionalised.At the same time, the Act will generate new demand for raw materials, components, and technologies aligned with EU standards. Trade partners that can demonstrate reliability, sustainability, and regulatory alignment will remain key to Europe’s industrial ecosystem.

The Risk of Fragmentation

However, there is a risk that an overly inward-looking approach could lead to market fragmentation, higher costs, and reduced efficiency in global value chains. European industry, including downstream sectors, relies on open, well-functioning trade flows to remain competitive.A “Made in Europe” strategy should therefore not translate into isolation, but rather into smart integration with global partners.

Advocacy: Keeping Trade Open and Competitive

From an industry perspective, the IAA must strike the right balance between strengthening Europe’s industrial base and preserving the benefits of open trade. In particular:- Avoid protectionist distortions that could increase costs for businesses and consumers- Ensure access to global supply chains, especially for critical materials and components not available in Europe- Promote circularity and recycling markets, including efficient cross-border flows of secondary raw materials- Maintain a level playing field, ensuring that EU measures remain compatible with international trade rules

A Competitive and Connected Europe

The success of the Industrial Accelerator Act will depend on its ability to combine a strong “Made in Europe” vision with a globally connected and competitive economy.For industry stakeholders, this means actively engaging in the policy process to ensure that resilience does not come at the expense of efficiency, and that Europe remains both a strong producer and a reliable trading partner.