German Chancellor Friedrich Merz said on Friday, October 30, that he would relay to Brussels concerns voiced by key Asian trading partners that the European Union's 'Made in Europe' initiatives risk becoming a new form of protectionism, Reuters reported from Seoul.

Source: Reuters

'There is a fear that we might be facing a new wave of European protectionism — that we are closing ourselves off from other nations,' Merz said in South Korea, the last stop on a week-long trip that also took him to Japan and Singapore.

Merz said he had heard similar concerns at all three stops about the EU's proposed Industrial Accelerator Act, which is intended to strengthen the bloc's industrial base by encouraging more manufacturing and sourcing within Europe. Brussels Morning, reporting independently on Friday, also said partners in South Korea, Japan and Singapore raised sustained apprehension about the proposed act during his tour.

Source: Brussels Morning

The proposal is part of broader EU efforts to help local industries compete with overseas rivals that do not face Europe's stringent regulations and higher energy costs, while also reducing reliance on China. The plans have fuelled concerns among non-European countries about the potential emergence of new trade barriers.

What happens next

EU governments and the European Parliament must still agree on a final text, with approval expected next year, Reuters reported. That means the concerns Merz carries back will be heard while the law is still being shaped, not after it is settled.

'I take these concerns very seriously. I will carry them back not just to Berlin, but also to Brussels, and I will certainly raise the fact that these concerns were expressed to me quite forcefully here,' Merz said. He added that German and European products could succeed in Asian markets only if the bloc remained open to trade.

The chancellor used the trip to promote closer cooperation among 'like-minded' middle powers as a counterweight to the trade and economic policies of the United States and China, Reuters reported.