Five Japanese steel industry associations have called on the European Union to revise its proposed Industrial Accelerator Act (IAA), warning that stricter requirements for low-carbon and EU-origin steel could disrupt international supply chains.
The European Parliament's draft report proposes increasing the mandatory share of low-carbon steel from 25% in 2029 to 50% in 2036. It also introduces origin requirements under which steel must be melted and poured within the EU, with at least 75% of its primary iron input reduced within the bloc.
Japanese steelmakers warned that these provisions could affect approximately 700,000 mt of direct steel exports annually, alongside 1.7 million mt of indirect exports through automobiles, industrial machinery and electrical equipment.
The concerns come after the EU introduced new steel trade measures in July 2026, reducing tariff quotas and raising the out-of-quota tariff rate to 50%.
The associations are seeking equal treatment for Japanese products and recognition of Japan's GX Steel under the EU's low-carbon steel classification.
They also urged the Japanese government to pursue negotiations on the IAA alongside ongoing discussions over steel tariff quotas.
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