EU member states are fundamentally overhauling one of the Industrial Accelerator Act’s (IAA) most sensitive provisions, replacing the European Commission’s expansive „Made in Europe” concept with a legally precise framework tethered to trade agreements and product-specific market access.
Circulated recently, the latest Council compromise introduces a „partner origin” classification to determine when non-EU goods match domestic products in public procurement and subsidies. Instead of granting blanket equivalence to all free-trade partners, eligibility will depend strictly on concrete procurement commitments for each individual product category.
This adjustment reins in the Commission’s broad discretion, which could have potentially greenlit up to 80 countries. By shifting regulatory power toward implementing acts, national governments secure a formal say in evaluating third-party countries based on reciprocity and supply security.
To ensure smooth practical application, the Commission will maintain product-specific lists via the Access2Markets portal, shielding procurement bodies from database errors. The Council also integrated a strict „melt and pour” rule for steel origin and allowed potential delays to the 2029 local-content thresholds for steel, cement, and aluminum if technical standards lag. Meanwhile, industrial acceleration zones have been made optional, complicating the timeline for final adoption.