AEGIS Europe Responds to ENVI Vote on the Temporary Decarbonisation Fund in the context of European Commission 17 Dec. package on CBAM

Brussels, 15 July 2026. The European Parliament's Committee on the Environment, Climate and Food Safety (ENVI) has taken an important step in shaping the future of the EU's Carbon Border Adjustment Mechanism (CBAM), adopting its position on 6 July. The committee endorsed the extension of CBAM, strengthened measures to prevent circumvention, and proposed changes to the mechanism for addressing market disruptions. In parallel, ENVI also adopted its position on the temporary decarbonisation fund (TDF).

However, AEGIS Europe wishes to express the following concerns regarding the compromise amendments adopted by the ENVI Committee on the Temporary Decarbonisation Fund:

The TDF cannot substitute a long-term structural solution for EU export sectors impacted by CBAM. Dedicated financial support should therefore be earmarked within the forthcoming EU Multiannual Financial Framework, providing long‑term certainty for EU producers, in case such a solution is eventually retained.

This long-term solution needs to be proposed urgently and compensate EU exporters for the increased ETS costs. CBAM will generate raw material cost increases for importers of CBAM covered goods and downstream operators. Such costs should also be acknowledged and compensated. Therefore, we welcome the extension of eligibility to downstream operators and certain downstream goods under the TDF. Export adjustments must be part of the CBAM design to ensure that European exports do not become uncompetitive on foreign markets. This long-term solution should reflect the free allocation phase out trajectory, maintain decarbonization incentives, and be explicitly linked to export exposure. It should be included in the ETS review proposal which is expected mid-2026. AEGIS Europe proposed a WTO-compatible solution.

A carbon leakage tool, not an investment tool: the TDF, and hence the permanent export adjustment solution, are carbon leakage tools designed to protect EU-based, energy-intensive industries, rather than an investment fund, whether for EU installations or developing countries. In addition, European producers are already subject to a series of decarbonisation conditionalities. Any provision related to adding decarbonisation conditionalities for European producers should be rejected.

It should be emphasized that China's strategy in Africa and South-East Asia is heavily driven by its need to export domestic industrial overcapacity, flooding markets with subsidized manufactured goods. Top Chinese investment and contracting destinations include Nigeria, South Africa, Algeria, Morocco, Angola, the Democratic Republic of the Congo (DRC), Egypt, Indonesia, Malaysia and Vietnam. The overcapacities/productions of those countries are directed towards Europe, affecting massively the competitiveness of European producers. Any provision related to funding countries in development or creating a tool for "international climate finance" through the TDF, should not be considered in the TDF which is a carbon leakage instrument. There are other tools and instruments for this.

Ahead of the Parliament's plenary vote and the forthcoming negotiations, AEGIS Europe will continue to engage with the European institutions to ensure that the final legislation provides effective protection against carbon leakage while safeguarding the competitiveness of European industry.

AEGIS Europe’s key messages on CBAM

•AEGIS Europe supports a CBAM that is efficient in addressing carbon leakage risks while ensuring a level playing field on both European and foreign markets

• Simplification attempts are welcome, but not at the expense of effectiveness in preventing carbon leakage. Simplification should not facilitate or lead to circumvention

• CBAM needs a WTO-compatible export adjustment solution for producers of CBAM goods to avoid carbon leakage and the replacement of EU low-carbon products with high-carbon alternatives on global markets

• Anti-circumvention rules must be strengthened to ensure the effectiveness of the measure and avoid practices such as resource shuffling or cost absorption

CBAM alone cannot solve the carbon leakage issue for all sectors, especially ETS sectors it covers with very specific value chains, products, and global trade flows. For these sectors, a stronger carbon leakage protection and additional measures are needed

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AEGIS Europe is an industry alliance that brings together more than 30 European manufacturing associations representative of the whole value chain, from commodities down to consumer end products. Our members account for more than €500 billion in annual turnover, as well as for millions of jobs across the EU.

AEGIS Europe’s Position Paper on the Industrial Accelerator Act

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AEGIS Europe welcomes the European Commission's proposal for an Industrial Accelerator Act (IAA), which seeks to accelerate industrial decarbonisation and strengthen manufacturing capacity in strategic sectors.

In today’s geopolitical and trade environment, EU manufacturing resilience, competitiveness and strategic autonomy are increasingly undermined by persistent global overcapacities, state-induced market distortions and unfair trade practices. These distortions risk displacing European production and weakening the industrial base required for the clean transition.

In this context, industrial decarbonisation cannot be considered in isolation from trade exposure. The Act should ensure that public support, procurement incentives and market opportunities primarily benefit manufacturing activities located in Europe, while preserving the competitiveness of European industry across strategic value chains. Industrial decarbonisation should also be supported by affordable energy prices, secure access to raw materials and a stable and predictable regulatory environment that does not create distortions within the internal market. Without addressing these enabling conditions, decarbonisation efforts risk accelerating carbon leakage, reducing industrial output and weakening Europe's manufacturing base.

AEGIS Europe Policy Recommendations

1. Establish a robust and strategic Union-origin requirement

The definition of “Made in EU” should be designed to strengthen industrial resilience, strategic autonomy and fair competition. A robust Union-origin framework under the IAA is essential to ensure that EU industrial support measures are not undermined by trade distortions and third-country subsidisation practices. Without clear origin criteria, the IAA risks indirectly reinforcing foreign production structures benefiting from non-market conditions.

As a general principle, products, components or content originating from third countries covered by Free Trade Agreements (FTAs), customs union arrangements or the WTO Government Procurement Agreement (GPA) should not automatically qualify as Union-originating for the purposes of the IAA. Furthermore, Union-origin equivalence, as well as access to public procurement schemes and public support mechanisms under the IAA, should not be granted to countries that maintain or contribute to structural overcapacities through state support, market access restrictions, requirements to purchase locally irrespective of reciprocity agreements, export controls or other non-market practices.

To ensure strategic autonomy, the regulatory framework must grant a direct prioritisation to EU-made products. Therefore, AEGIS Europe recommends the introduction of a case-by-case “opt-in” mechanism under which third-country content may be recognised as equivalent to Union-originating only when:

• the third country has public procurement commitments towards the EU that provide reciprocal access to its market;

• the third country has implemented a carbon pricing system equivalent to that of the Union and has a similar climate target ambition as the EU;

• the third country demonstrates compliance with ESG standards, respect for the rule of law, market economy principles, fair competition practices, transparency obligations and the absence of structural overcapacities.

2. Use public procurement as a strategic industrial policy instrument

Public procurement and other forms of public intervention provisions under the IAA should support the competitiveness, resilience and decarbonisation of European industry across all sectors and value chains.

AEGIS Europe recommends that:

• public procurement criteria give clear preference to Union-originating products and technologies;

• a value-chain approach is applied to benefit both upstream and downstream sectors;

• access to EU procurement opportunities is conditioned on reciprocity: third-country companies could benefit from access to EU procurement markets only where European companies enjoy equivalent and effective access to procurement markets in the countries concerned, and where all other ‘opt-in’ criteria for Union origin equivalence are met.

• the exception according to which contracting entities would not apply the obligations in case of ‘disproportionate costs’ or for ‘cost differences exceeding 25%’ needs to be modified. Indeed, in public procurement, undercutting prices has been observed as a common practice of certain third country economic operators – often going beyond the 25% difference. Against this background, the 25% cost difference should be an absolute minimum based on a sound and comparable price matrix, at the level of overall project costs, that integrates the Foreign Subsidies Regulation and CO2 allowances cost. There should also be a reasonable possibility for bidders to challenge the use of exceptions.

• while AEGIS Europe appreciates and supports the ‘light’ self-declaration system – i.e. without third party assessment – which has been proposed to limit the administrative burden of economic operators participating in public procurement procedures, clear and robust enforcement is needed. The absence of clearly defined enforcement provisions in the current text presents several risks, such as circumvention or arbitrary, inconsistent, or disproportionate penalties, thereby increasing the likelihood of legal challenges and administrative disputes. The responsibilities of the different levels (European Commission, Member States, contracting entities) are highly unclear at this stage. There should be sanctions defined and enforced by the European Commission – i.e., with broader implications than just the procurement procedure in question – regarding bidders which would be found to “have constructed” a false declaration; this would strengthen the credibility of the obligations and mitigate the risk of anti-circumvention. Furthermore, bidders in the framework of a specific procedure should be able to alert competent authorities based on initial suspicions of non compliance in order to trigger ex-post controls by the European Commission and/or national authorities, thereby preventing unreliable or inaccurate self-declarations.

  3. Design public support schemes that create lead markets for Made in EU products

  AEGIS Europe calls for public support schemes and incentives to support EU manufacturers and EU consumers. Public incentives constitute a complementary instrument to public expenditure and should therefore be designed in line with the same principles that govern public procurement frameworks.

  AEGIS Europe sees the IAA as an opportunity to define a regulatory framework that could help consumers benefit from incentives when opting for low-carbon or Made in EU products on the market.

  As for public procurement, public incentives should give preference to Union-originating products and technologies, to low-carbon products, and to both upstream and downstream goods. Access to public support scheme opportunities should be conditioned on reciprocity: third-country companies should benefit from access to EU public incentives only where European companies enjoy equivalent and effective access in the countries concerned.

  4. Develop a clear framework for low-carbon products

  The absence of a harmonised definition and methodology on low-carbon products creates uncertainty for industrial operators and investors and risks undermining investment decisions necessary for the clean transition.

  AEGIS Europe recommends therefore that low-carbon requirements under the IAA be based on transparent, science-based and internationally recognised methodologies and rely on comprehensive life-cycle assessment approaches covering the entire environmental footprint of products. Such methodologies should be technologically neutral, proportionate, verifiable and should avoid creating competitive distortions arising from differences in national energy systems. Therefore, the European electricity mix should serve as the benchmark for electricity-related emissions, with this principle set out directly in the IAA to ensure legal certainty and a level playing field across the Union.

  5. Strengthen industrial resilience through strategic foreign direct investment

  Foreign direct investments in strategic sectors should contribute to the Union’s long-term industrial resilience, technological sovereignty and innovation capacity, while demonstrating a genuine and verifiable contribution to the European economy, including technology and know-how transfer, the development of local industrial ecosystems, the creation of high-quality jobs, and progressive integration into Union value chains.

  Clarifications on responsibilities are needed to ensure that a multi-layered approach delivers meaningful results; should the proposed multi-layer system be maintained, procedural uncertainty should be reduced, and clarity and predictability further increased, including by safeguarding investment timelines for non-targeted sectors.

  To ensure that such contributions are effectively delivered, AEGIS Europe recommends that joint ventures benefiting from the IAA include appropriate corporate governance safeguards guaranteeing the effective participation of Union partners in strategic, technological and manufacturing decisions. Formal ownership thresholds alone should not be considered sufficient where governance arrangements limit the effective influence of Union partners.

  For greenfield investments, Union-origin and low-carbon requirements should be implemented through a phased and roadmap-based approach, allowing supply chains to be progressively localised while preserving investment attractiveness and supporting industrial scale-up. Such roadmaps should be subject to approval, monitoring and periodic verification by the competent authority or, where applicable, by the Commission. This approach would support fair competition, balanced industrial development across all Member States, and the resilience of the Union’s industrial base.

  6. Reinforce the framework for industrial manufacturing acceleration areas

  AEGIS Europe supports the proposed framework for Industrial Manufacturing Acceleration Areas. However, it stresses that the initiative should encompass new industrial projects as well as existing strategic industrial installations and production capacities. Fast, predictable, and simplified permitting procedures are essential to safeguard and expand Europe’s upstream industrial base and to reduce strategic dependencies on third countries.

  AEGIS Europe also notes with concern the absence of credible funding instruments, as well as the lack of clear oversight and coordination mechanisms, which risks leading to fragmented implementation across Member States.

  7. Limit the use of delegated acts

  The IAA should provide a clear, stable and predictable regulatory framework directly in the primary legislation.

  While delegated acts are key to guarantee a certain extent of flexibility, AEGIS recommends avoiding their extensive use, which could increase regulatory complexity, reduce legal certainty for investors and industrial operators and create an overly fragmented framework.

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  AEGIS Europe is an industry alliance that brings together more than 30 European manufacturing associations representative of the whole value chain, from commodities down to consumer end products. Our members account for more than €500 billion in annual turnover, as well as for millions of jobs across the EU.

AEGIS Europe Letter to President von der Leyen on Trade Defence

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Dear President von der Leyen,

Dear Executive Vice-Presidents of the Commission

Dear Members of the College of Commissioners,

AEGIS Europe is an industry alliance that represents more than 30 European manufacturing associations and companies across entire industrial value chains, from metals and ceramics to transportation industries. Together, our members account for more than €500 billion in annual turnover and millions of direct and indirect jobs across the European Union. European manufacturing is under extreme pressure from state-controlled and export-driven economies, which subsidise enterprises, resulting in global overcapacities flooding world markets. While striving to maintain a competitive edge, European industries in many sectors can no longer endure unfair trade practices resulting from such overseas overcapacities.

As highlighted in the Draghi Report, Europe urgently needs a stronger industrial and trade strategy capable of preserving a competitive manufacturing base and ensuring a level playing field internationally. AEGIS Europe supports the EU’s existing Trade Defence Instruments, which remain essential but must be strengthened. European industries continue to face investigations that are too slow, measures that are too weak, and instruments that are insufficiently adapted to the scale and speed of distortions that evolve, and strategies to avoid EU measures.

AEGIS Europe calls, therefore, for faster and more effective trade defence procedures, as well as the urgent allocation of additional human resources in the trade defence services of DG Trade in order to enhance the speed, effectiveness, and enforcement capacity of investigations. At the same time, AEGIS Europe calls for the urgent establishment of a new EU instrument specifically designed to address overcapacities and their disruptive consequences for European industries and value chains.

This instrument should:

• be available on demand to any industrial sector affected by loss of market share in the EU and export markets due to overcapacities and other trade distortions;

• give competence to the Commission to act;

• allow for a full value-chain approach, hence addressing the impact of unfair practices throughout industrial ecosystems and in anticipation of circumvention or shifts in production;

• as overcapacities and distortions are not limited to one country alone, the instrument must be available for all countries;

• rely on publicly available information and/or market intelligence analyses provided by the industry to trigger investigations

• require respondent countries to demonstrate the absence of overcapacities.

The European Union cannot remain exposed to unfair competition while other global actors continue to deploy increasingly assertive industrial and trade policies. A stronger, more responsive, and more effective EU trade defence toolbox is essential to safeguarding European industry.

Sincerely, Inès Van Lierde Renaud Batier Co-Chairs AEGIS Europe

AEGIS Europe endorses Antwerp Declaration Community, calls for more man-power for trade defence, and for emergency industrial measures

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AEGIS Europe endorses Antwerp Declaration Community, calls for more man-power for trade defence, and for emergency industrial measures

Following the European Industry Summit in Antwerp, AEGIS Europe reiterates that Europe’s resilience, security, and prosperity rest on the competitiveness of its industrial base.

In a period marked by geopolitical shocks, structural dependencies, overcapacities and intensifying global competition, Europe cannot safeguard its strategic autonomy without a strong European industry. At the Summit, more than 500 business leaders and representatives of the workforce met with senior European decision-makers, including European Commission President Ursula von der Leyen and several heads of state. As Belgian Prime Minister De Wever warned during the Summit, Europe is “on the brink of an existential crisis”, due to increased energy prices, dumping and regulatory pressure.

Two years after industrial leaders first signed the Antwerp Declaration, the outlook has deteriorated across most indicators, as indicated in a recent Deloitte report. In parallel, the Draghi Observatory report by EPIC indicates that as of January 2026 only 15.1% of the recommendations associated with the Draghi agenda have been fully implemented over the past two years. These findings underline a widening gap between Europe’s industrial ambitions and delivery on the ground, even as the pace of site closures and job losses accelerates in vital sectors. In this context, AEGIS Europe endorses the Antwerp Declaration Community’s call for urgent and bold action by EU leaders meeting in Alden-Biesen.

We urge the adoption of a package of emergency industrial policy measures centered on:

• Ensuring fair trade and a level playing field. Trade defence instruments (TDI) must be faster, stronger, and adapted to current market realities. This requires the immediate allocation of additional man-power to DG TRADE to ensure timely and effective use of the existing trade defence instruments action and the modernising the EU’s TDI toolbox. The Foreign Subsidies Regulation (FSR) should be beefed up and used more systematically by DG COMP and DG GROW to tackle distortions on the Single Market.

• Introducing European content in public procurement. Public procurement should prioritise products made in Europe in forthcoming initiatives, including the Industry Accelerator Act, to support industrial capacity and jobs across the Union in sectors already facing dependencies and in those at risk due to their strategic importance and evolving market conditions.

This should also apply to the use of public funds more generally. Furthermore, risk assessments should be carried out vis-à-vis foreign high-risk suppliers. These initiatives should improve transparency on the origin of products and rely on sectoral and consistent principles and criteria, ensuring that demand-side measures, funding and procurement rules jointly contribute to strengthening EU-based production.

This is a decisive moment. Europe must move from diagnosis to delivery – restoring industrial competitiveness, safeguarding high-quality jobs, and turning the Clean Industrial Deal into tangible outcomes in 2026. 

AEGIS Europe Feedback on the Revision of the Public Procurement Directives

AEGIS Europe welcomes the opportunity to provide its input to the revision of the Public Procurement Directives.

We are an industry alliance bringing together more than 30 European manufacturing associations representative of the whole value chain, from commodities down to consumer end products.

Public procurement is a strategic tool that can be used to strengthen Europe’s industrial base, competitiveness, and strategic autonomy. Its revision should ensure strong enforcement and alignment with EU industrial, trade, and climate policies to prevent price-driven practices that allow unfairly subsidised or non-market products to undercut European production. If effectively structured, public procurement can incentivise high environmental and social standards and contribute to strategic autonomy.

Below, you may find some of our suggestions, based on our members’ input:

• Exception on international rules: Article 20, Directive 2014/25/EU allows the derogation of EU public procurement rules ‘pursuant to international rules’ (e.g. through an international agreement). This has created a route for the undisputable circumvention of EU public procurement rules and unfair competition, especially through China’s Belt and Road Initiative projects in certain Member States (e.g. Hungary). AEGIS Europe calls for the removal of Article 20, which threatens the general interest of European Union. The uniform application of EU procurement rules across all contracting entities will then be ensured, and vital EU public interest objectives such as transparency and non-discrimination will be upheld.

• Systematic exclusion of Foreign Bidders in strategic sectors. Clear and more uniform rules for the participation of Foreign Bidders – understood as bidders from countries which are not a party to the WTO Agreement on Government Procurement (GPA) or other trade agreements with the EU, i.e. in line with EU international obligations – must be ensured to provide legal certainty to bidders and contracting entities alike. As the EU has exclusive competence on this matter, we call on the systematic exclusion of these bidders for public procurement procedures related to strategic sectors, especially for State-owned economic operators since they are of direct concern for the security of the Union.

• A long-term vision for European content: In the longer term, EU content must become the cornerstone of a credible public procurement policy. Public procurement should aim for a high share of European-based production, with limited exemptions where products are unavailable.

• Definition and enforcement of “Made in Europe”. The concept of “Made in Europe” is central to the effectiveness of EU preference in public procurement, yet it currently lacks a clear and robust definition. Experience from trade and climate policies show that origin-based criteria can be easily circumvented if they rely on formalistic or minimal transformation rules. Public procurement should therefore rely on substantive production criteria rather than formal origin labels.

• Strategic alignment with the Foreign Subsidies Regulation (FSR): The current Regulation allows a suspicious bidder already targeted by an in-depth investigation of the European Commission that has not yet been completed to bid on – and potentially be awarded – new projects. Given the systemic risks this represents for the procurement market, no such bidder should be allowed to participate in procurement procedures, be it alone or part of a consortium, unless they cooperate and facilitate the completion of an ex officio investigation. Additionally, public procurement should also consider the presence of industrial subsidies and structural overcapacities in the country of origin. In non-market economies, such factors often result in systematically underpriced products that cannot be matched by EU producers operating under normal market conditions.

• Very low bids and distortion of competition: Public procurement rules already provide contracting authorities with the possibility to exclude tenders where there is a distortion of competition, including in cases linked to dumping practices (abnormally low tenders). However, this possibility is rarely used in practice, and very low bids are often treated as a purely commercial issue. This approach ignores the reality that many such bids are the result of non market practices, including state subsidies, environmental dumping or structural overcapacities. The provisions on abnormally low tenders should therefore be reinforced, in full alignment with the FSR rules.

AEGIS Europe Position on the Review of the Foreign Subsidies Regulation

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AEGIS Europe welcomes the opportunity to submit its input to the European Commission as part of the Review of the Foreign Subsidies Regulation (FSR). In recent years, there has been an increasing influx of bidders from economic operators from third countries. If we consider that EU funds (e.g. European Structural and Investment Funds, Connecting Europe Facility) can be involved and de facto awarded to economic operators, distorting competition based on price, this is even more relevant as it can contribute to a decreased competitiveness of EU companies.

This situation, which has been documented notably by the OECD in its publications on measuring distortions in international markets (e.g. rolling stock value chain, aluminium, semi-conductors), can lead to a loss of market share and deindustrialisation of the EU, as well as having negative effects on competition in the Single Market. Coupled with increasing contractual requirements and award criteria focused mostly if not exclusively on price, European companies could be discouraged to submit bids due to low chances of winning, which would be detrimental to the quality of the solutions supplied to public authorities and create supply risks.

Against this background, the FSR is an autonomous EU trade instrument of outstanding importance for ensuring a level playing field in European procurement markets. Below, we present a series of recommendations to further strengthen the tool.

Identification of subsidies most likely to distort the internal market:

AEGIS Europe believes that a number of foreign subsidies should be considered to have a distortive effect on a per se basis, notably all subsidies to beneficiaries active in sectors: o Characterised by structural excess capacity. o Featuring high-tech and/or dual-use products to a significant extent; or, o Designated as strategic by the government providing the subsidies (e.g. in policies such as Made in China 2025).

Also to be considered distortive per se should be foreign subsidies to operators which have privileged and/or protected access to a significant non-EU market, especially if the non-EU market is the operator’s domestic market.

Additionally, we believe that it would be beneficial to integrate elements arising from previous investigations of the European Commission, such as explicitly considering the amount of the subsidies compared to the estimated valued of the public procurement as a relevant fact for assessing a potential distortion.

Balancing test:

AEGIS Europe insists that a balancing assessment must start from the presumption that there is a fundamental and strong EU interest in favour of removing the effects of distortive foreign subsidies, especially those endangering sustainable and diversified supply chains and the preservation of a strong industrial base in Europe.

In addition, because a balancing assessment must involve an adequately transparent and coherent analysis of both short-term and medium-term impacts of the distortions in question, the Commission should carry out full and timely consultation of relevant EU industries and give meaningful consideration of their input.

Beef up ex officio review:

Ex officio investigations should be launched towards economic operators that have already been subject to one or several in-depth investigations in other public procurement procedures that remained incomplete due their withdrawal of the bids in question. When an economic operator has been targeted by a public procurement investigation and that investigation is either not concluded or has resulted in determination that the company received distortive foreign financial contributions, there must be an automatic investigation if this company participates in other tenders – be it above OR below the threshold. Any award to an economic operator for which the Commission has already identified a strong presumption of distortive foreign subsidies poses a major risk to the credibility of the instrument. Therefore, this issue should be addressed in the 2026 review to remedy this flaw.

Finally, the Commission should also investigate, through ex officio review, how foreign subsidies may create distortions through the opening of factories by State-owned third-country companies in the EU or change of ownership of European companies to the benefit of State-owned third country economic operators.

Lower the public procurement threshold:

The threshold of EUR 250 million for public procurement is high and fails to capture many important projects, for example in the construction or rail supply industries. A revised threshold of EUR 150 million would be more appropriate to partly solve the current challenges faced by the instrument in conjunction with more ex officio investigations. Hence the power of the Commission to request the notification of foreign financial contributions in a public procurement procedure below the notification thresholds is key given the easy circumvention of the instrument by foreign economic operators. In any case the ex officio mechanism should be efficiently and more systematically utilised, especially if the threshold remains unchanged.

Strengthening enforcement towards Contracting Entities and Member States:

The FSR rightly aims at minimising disruptions and delays in public procurement procedures, which is in the interest of Contracting Entities and industry alike. In particular, the Commission cannot start an investigation related to a tender once the tender has been awarded to a bidder (Article 29 (8)).

However, the Commission should have the authority to overrule an award decision if two factors are met: (i) the contracting entity did not ensure the notification process whereas the project value was above the public procurement threshold; (ii) the economic operator to which the contract has been awarded has been subject of a previous in-depth investigation, whether complete or incomplete.

This will strengthen the knowledge of the instrument and the willingness of certain Contracting Entities to comply with the obligations. Furthermore, coordination with Member States should be strengthened in case patterns are noticed, and Member States should also support the European Commission in helping Contracting Entities with awareness-raising on their obligations as well as capacity-building measures.

Simplify the instrument and reduce the administrative burden:

The European Commission should consider it a priority to reduce the administrative burden and reporting obligations, as this would have a positive impact on all concerned parties (Contracting Entities, Industry and European Commission itself), while ensuring that a balance is found and that the objectives of the Regulation are fully met. For economic operators that have to submit information multiple times over the same year because they regularly participate in public tenders above the notification threshold, one notification per year should be sufficient, provided of course that they – or their parent company or their subsidiaries – do not receive any new foreign financial contribution in the meantime.

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AEGIS Europe is an industry alliance that brings together more than 30 European manufacturing associations representative of the whole value chain, from commodities down to consumer end products. Our Members account for more than €500 billion in annual turnover, as well as for millions of jobs across the EU.

AEGIS Europe and Plastics Recyclers Europe call for swift and effective actions to secure the future of EU industry

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Brussels, 29 October 2025. As the European Union faces growing global competition, European producers already face several trade challenges, including high production costs (especially energy), global overcapacities, and aggressive third-country industrial policies.

Market performance indicators reveal a decline in competitiveness in the last ten years. This is evident in reduced production across sectors such as steel, silicon, ferroalloys, aluminium, and paper & board. Additionally, exports have dropped significantly in sectors like finished steel, man made fibres, and paper & board. Increased energy prices also play a role, but the real problem is the dumping of excess capacities on the open EU market and the need for new approaches to deal with industrial subsidies in addressing these overcapacities.

We are losing manufacturing jobs at an alarming rate. In AEGIS Europe sectors alone, approximately 34,000 direct jobs have been lost compared to the pre-COVID period. Considering that each direct job loss triggers 3-4 indirect job losses, this amounts to around 100,000 total jobs lost.

Since the 2008-2009 financial crisis, the situation has worsened, with 2.5 million industrial jobs disappearing and numerous plants across Europe shutting down. A wave of closures has been rolling out across the EU, mainly in the automotive sector and energy-intensive industries, but also in green tech sectors such as batteries. These closures are occurring throughout the EU.

Against this backdrop, and a year after the publication of the Draghi Report, AEGIS Europe, together with Plastics Recyclers Europe, calls on the EU to:

1. Strengthen and expedite the use of Trade Defence Instruments (TDIs) to timely protect EU industry from unfair foreign practices:

• Injury Margin: WTO law does not provide for injury margins; thus, the EU has full discretion in determining the calculation method. The current methodology does not account for the volumes of imports or potential volumes. Therefore, factors such as the actual market share of imports and potential market share (due to overcapacities) can be legally used to increase the injury margin.

• Dumping Margin: The normal value in the country of origin is compared to the export price to the EU, subject to a fair comparison. If the export price to the EU reflects a higher price due to social and environmental costs borne in the EU, an adjustment should be made to increase the margin by subtracting these costs from the export price. Both changes do not require an amendment to the basic Anti-Dumping Regulation.

• Small and medium-sized enterprises (SMEs), often the most harmed by unfair trade, are effectively excluded from investigations due to the heavy data-gathering burden. While DG TRADE has set up an SME Helpdesk, it must be empowered to support enterprises in collecting data and completing injury questionnaires. Legally, injury evaluations for SMEs do not have to follow the same standards as those for large enterprises.

• Address energy subsidies: Energy has a big share in the cost of production of key industries in the Union. While EU industries have been affected by an increase of energy costs, notably due to Russian’s invasion of Ukraine, third countries which have subsidised energy have been able to unfairly take market shares from EU industries. Consideration must be given to taking action, both in the WTO and in domestic Anti-Subsidy actions, to counter these massive subsidies which can be considered Specific in that they apply to fossil fuels only.

2. Upgrade the toolbox of EU industries by optimizing old instruments or designing new ones, such as an overcapacities instrument:

• We call for an instrument that: i) must not be limited to the steel sector; ii) is available independent of the Safeguard instrument. Iii) can be triggered by the EU industry, to avoid political interferences. The instrument must allow the imposition of punitive tariffs, or any equivalent measure, at the border, on goods sourced in third countries which have given support directly or indirectly to the rise of economically irrational overcapacities.

3. The Foreign Subsidies Regulation represents an important trade autonomous tool to protect the European Industry’s competitiveness and ensure a level playing field on the Single Market. In recent years, there has been an increasing influx of subsidised bidders from State-owned economic operators from third countries: this unfair situation can lead to a loss of market share and deindustrialisation of the EU, as well as having negative effects on competition in the Single Market. Ahead of the publication of the EC guidelines in 2026, and the deadline for the regulation’s evaluation, we call for key improvements such as:

• Thresholds: The threshold of EUR 250 million for public procurement is high and fails to capture many important projects, for example in the construction or rail supply industries.

• Withdrawing bidders: It should not be permitted, in case of recurrent suspicions of unduly advantageous tenders, that bidders withdrawing from a procedure to avoid redressive measures can again bid in another procedure unless they have proven that they do not benefit from distortive subsidies.

• Nature of bidders: The shareholders’ structure of bidders should be checked and go beyond a mere declaration, in order to avoid participation from State-owned enterprises in bids.

• Reduction of the administrative burden for European companies which are equally concerned by the reporting obligations stemming from the Regulation.

AEGIS Europe urges the Commission to take action on global overcapacities and support the safeguard case on ferroalloys and silicon

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Brussels, 14 October 2025 – AEGIS Europe welcomes the European Commission’s initiative to address the negative trade-related effects of global overcapacity in the steel sector, and warns that the challenge of overcapacities extends far beyond steel. This requires a solution for the steel value chain as well as for other sectors facing similar challenges.

Overcapacities have become a value-chain problem, affecting upstream and downstream industries alike – from raw materials to final goods. China alone can meet Europe’s entire industrial demand several times over in many manufacturing sectors, while other third countries are also expanding production, making overcapacity a truly global phenomenon. This systemic distortion, largely – but not exclusively - driven by state-supported production, is undermining Europe’s drive toward strategic autonomy, deterring investment, and accelerating deindustrialization.

Recent developments in the ferroalloys and silicon sector, in particular, illustrate the scale of the challenge. With existing spare capacity exceeding 21 million tonnes and planned capacity increases of more than 13 million tonnes worldwide, global overcapacity for manganese and silicon-based alloying elements has reached unprecedented levels. These volumes cannot be absorbed by the market, especially amid declining European consumption and shrinking export opportunities as third countries adopt their own trade defence measures.

This crisis has brought Europe’s ferroalloys and silicon industry to the brink of collapse. As noted by Euroalliages – the European federation representing that industry, and active member of AEGIS Europe, the last silicon-metal producer in the EU recently closed. Silicon and ferro-alloys materials are indispensable for the production of steel, aluminium, batteries, and advanced defence applications – from cars and energy storage to drones and strategic infrastructure. Without them, Europe’s industrial resilience and economic security are at risk.

AEGIS Europe therefore expresses its strong support to the imposition of measures in the framework of the safeguard case on manganese and silicon-based alloying elements. The adoption of effective safeguard measures is essential not only to preserve the future of the ferro alloys and silicon industry, but also to prevent further deindustrialization across interconnected value chains.

AEGIS Europe believes this case is an example of the urgent need to adopt a comprehensive approach to overcapacities, extending to all affected sectors. This includes:

• Establishing a regular EU monitoring system of overcapacities risks by country and sector, building on the model of import surveillance;

• Creating an EU instrument to counter overcapacities based on the rationale behind the new steel measures. This instrument should be applicable across all sectors, independent of the safeguard mechanism, and triggered by industry;

• Enabling effective border measures, including punitive tariffs or equivalent actions, against imports originating from countries that directly or indirectly subsidize overcapacity.

As Commission President Ursula von der Leyen stated, “Global overcapacity is damaging our industry. We need to act now.” AEGIS Europe fully supports this call and urges the Commission to translate this recognition into a robust and forward-looking policy response.

DG Trade TDI Report 2024: Progress made, challenges remain

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Brussels, August 2025: AEGIS Europe welcomes the release of the 2024 Report on the Trade Defence Instruments (TDI) by the Commission, which confirms the EU’s continued commitment to tackling unfair trade practices and defending European industry. The report highlights a record 33 new investigations launched in 2024 – the highest number since 2006 – and an increase in the total number of definitive and provisional measures in force, rising from 186 at the end of 2023 to 199 at the end of 2024.

However, AEGIS Europe remains concerned about the Commission’s ability to sustain this level of activity without additional resources in Directorate G of DG TRADE. Already, staffing shortages have contributed to delays in launching new investigations. AEGIS Europe calls for the urgent reinforcement of human resources to ensure timely and effective investigations and enforcement of TDIs.

A significant share of the new cases shows evidence of overcapacities putting unfair pressure on European industries in the EU and in export markets. This phenomenon must serve as a wake-up call: Europe’s manufacturing base is at risk. An EU instrument to address systemic overcapacities across all sectors – not just steel – is urgently needed. This instrument must be independent of the Safeguards instrument. AEGIS Europe welcomes the Commission’s commitment to take social and environmental costs into consideration when assessing injuries sustained by European producers. However, poor social and environmental standards in countries where dumped imports originate also exert significant distorting effects on export prices, which should be further reflected when calculating the dumping margins.

The basic Anti-Dumping Regulation should be amended to remove the Lesser Duty Rule, a WTO+ provision which weakens the deterrent effect of TDI measures by capping duties at the lower of the dumping or injury margins. AEGIS Europe supports its removal and calls for broader use of the Commission’s discretion to apply full dumping duties where warranted.

Finally, we commend the Commission’s constructive dialogue with the European industry, including its recognition of AEGIS Europe’s contribution to the Brussels trade policy debate. Such engagement must now translate into concrete measures that strengthen Europe’s industrial resilience.

AEGIS Europe reacts to the European Parliament endorsement of the European Commission proposal for simplifying the CBAM

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Brussels, 23 May 2025. Yesterday, the European Parliament endorsed the European Commission’s proposal to simplify the Carbon Border Adjustment Mechanism (CBAM). The text was adopted with 564 votes in favour, 20 against, and 12 abstentions, reflecting broad political consensus. MEPs introduced only technical amendments for clarification and supported the inclusion of a new de minimis mass threshold of 50 tonnes.

We welcome the remarks made by MEP Antonio Decaro, Chair of the ENVI Committee and rapporteur, following the vote:

“The CBAM is a crucial instrument to help the EU prevent carbon leakage and incentivise climate action outside the EU. (...) This approach enables us to simplify matters for companies without dismantling or weakening the CBAM. We will continue to work quickly to bring legal clarity and certainty to all CBAM stakeholders.”

While we support this progress, we urge legislators to consider some key recommendations to ensure that the CBAM remains both effective and industry-friendly:

• AEGIS Europe has been advocating for the adoption of an export adjustment for several years: CBAM needs a WTO-compatible export solution for CBAM sectors to avoid carbon leakage and the replacement of EU low-carbon products with high-carbon alternatives on global markets, in a context where European producers already face several challenges in the export market, including high production costs (especially energy costs), global overcapacities, and aggressive industrial and trade policies by third country competitors.

• Furthermore, anti-circumvention rules must be strengthened to ensure the effectiveness of the measure and avoid practices such as resource shuffling which allows the exporting to the EU only products with lower carbon footprint while deviating other products to other markets, or cost absorption, where producers could absorb partially or totally the cost of the CBAM by reducing the price of the products at the EU border and/or by spreading the levy across his entire production. The risk of circumvention must be monitored at customs level, and the authorisation process for CBAM declarants should ensure that they are sufficiently skilled to detect this. Effective enforcement of the new exemption threshold for small importers at 50 tonnes of CBAM goods per year as introduced by the Omnibus package is necessary to prevent circumvention, as economic operators could try and avoid CBAM obligations by artificially importing through multiple entities falling below the threshold. Moreover, while AEGIS sees the benefits of simplifying CBAM for importers, it draws the legislator’s - attention to the need to reciprocally simplify the EU ETS for small emitters on the EU manufacturing side.

• AEGIS Europe supports a CBAM that is efficient in addressing carbon leakage risks while ensuring a level playing field on both European and foreign. To achieve these goals, we believe it is imperative to assess CBAM effectiveness before any extension of its scope: this assessment should have as a departing point a consultation of the industry. To do so, it is important to define the assessment criteria which will be used and to conduct a prior thorough impact assessment by consulting the industries concerned. Moreover, for some ETS sectors with very specific value chains, products, and global trade flows, a CBAM cannot effectively address carbon leakage and reduce emissions. For these sectors a stronger carbon leakage protection is needed.

In conclusion, AEGIS Europe members agree on the ultimate importance of finding a balance between simplification, accuracy and effectiveness of the mechanism in preventing carbon leakage. Moreover, simplification should not facilitate or lead to circumvention, and any effort in this sense should be subject to a comprehensive evaluation. A thorough consultation of the industry, including both CBAM sectors and sectors which might be covered by CBAM, should be conducted, keeping in mind that CBAM alone cannot solve the carbon leakage issue for all sectors, and further measures are needed to achieve decarbonisation.

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AEGIS Europe is an industry alliance that brings together more than 25 European manufacturing associations representative of the whole value chain, from commodities down to consumer end products. Our Members account for more than €500 billion in annual turnover, as well as for millions of jobs across the EU.

AEGIS Europe Position on the European Commission’s proposal for CBAM simplification

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Brussels, 8 May 2025. On February 26th, the European Commission adopted the Omnibus package, a series of proposals to simplify EU rules and boost competitiveness in several legislative fields, among which the Carbon Border Adjustment Mechanism (CBAM). Further to that, the European Commission announced a comprehensive CBAM review for Q3 2025, assessing the feasibility of extending CBAM scope to other EU ETS sectors at risk of carbon leakage, to downstream sectors and to indirect emissions, and to evaluate support for exporters. The steel and metals action plan (March 19) announced that a communication on options for an export adjustment might already be published by the EC in Q2 2025. Another interesting announcement concerns the release of an anti-circumvention strategy in Q4 2025 together with the legislative proposal on the extension of the scope of CBAM.

We welcome the European Commission’s commitment to simplify the CBAM to foster fair trade. While simplification is essential and a step in the right direction, allowing to significantly reduce the administrative burden for declarants – especially SMEs, AEGIS Europe members agree on the ultimate importance of finding a balance between simplification, accuracy and effectiveness of the mechanism in preventing carbon leakage. Moreover, simplification should not facilitate or lead to circumvention, and any effort in this sense should be subject to a comprehensive evaluation. A thorough consultation of the industry, including both CBAM sectors and sectors which might be covered by CBAM, should be conducted.

AEGIS Europe would like to express its position on some of the key proposals outlined in the Omnibus package on CBAM simplification:

• Exemption threshold for small importers at 50 tonnes of CBAM goods per year. This proposal would allow to exempt around 90% of importers from CBAM obligations, while keeping 99% of embedded emissions in the scope, thus reducing administrative burden and maintaining the environmental objective of CBAM. However, as noted above, effective enforcement, for example through establishing robust and comprehensive risk assessment mechanisms, is necessary to prevent circumvention, as economic operators could try and avoid CBAM obligations by artificially importing through multiple entities as subsidiaries, falling below the threshold, or by splitting EORI numbers. Furthermore, the same logic of simplification applied here to importers under the CBAM should apply to EU producing small emitters under the EU ETS (Art. 27 of the ETS Directive) by increasing from 25Kt to 50KtCO2/year the threshold below which EU producers can opt out and be subject to national equivalent measures, thereby decreasing the administrative burden without lowering the decarbonisation ambition and efforts of EU producers.

• Simplification for EU precursors is also welcomed. As AEGIS Europe stated on other occasions, it is important to avoid double reporting for EU ETS installations in order to reduce the administrative burden. However, for legal coherence, the sentiment expressed in Recital (14)1 which creates a derogation for reporting EU-produced precursors should be materialised in an Article. The European Commission should update its existing guidance document to avoid double reporting already during the transitional period.

• Amendment of art. 26 of the CBAM regulation with the inclusion of a paragraph 1(a) stating that competent authorities can, under certain conditions, decrease the amount of the penalty imposed for the failure to surrender a given number of CBAM certificates. AEGIS Europe believes that the proposal creates an uneven playing field and legal uncertainty and inconsistencies across Member States, as the derogation is not predicted under EU ETS. This could open the door for non compliance and failing to follow the conditions set out in art. 16(1) of the EU ETS directive, stating that penalties should be “effective, proportionate and dissuasive”. Finally, CBAM penalties should always be equivalent to ETS penalties.

• Entry into force of CBAM financial obligations in 2027. The kicking in of financial obligations should be maintained in 2026, as its delay undermines the effectiveness of the tool because goods enter the EU market in 2026 without any certainty that declarants will be able to fulfil the surrendering obligation in late 2027.

• Default values for countries where there is not enough available data. The Commission’s proposal suggests using an average of the ten high emitting countries to calculate default values for countries where there is not enough reliable data. Using such a wide sample could result in default values lower than the actual emissions of the country, thus failing to encourage reporting of actual emissions. We recommend the use of a smaller sample, such as the top three-highest emission exporting countries where there is enough reliable data.

Overall, the Omnibus proposal seems to go in the right direction, although there are still further steps that can be taken to strengthen CBAM effectiveness and prevent circumvention while simplifying the system:

• Foreign operators should be able and strongly encouraged to provide their emission data directly through a submission in the CBAM registry. This would enhance the quality of the data as the same operators would be subject to a third-party verifier scrutiny and to the verification of the EU CBAM Authorities. If this cannot be guaranteed, CBAM declarants should use default values. This would allow the simplification of the reporting system of emission data by CBAM declarants, as they would be able to refer to the submissions made by the foreign installation and tie it to the specific imports they have made.

• The same level of transparency of the ETS should apply to CBAM: the information in the CBAM Registry will be confidential, while the EU ETS Registry Regulation provides public access to most of the relevant information included in the registry.

Background

AEGIS Europe supports a CBAM that is efficient in addressing carbon leakage risks while ensuring a level playing field for European and foreign producers. To achieve these goals, we believe it is imperative to assess CBAM effectiveness before any extension of its scope to other goods: this assessment should have as a departing point a consultation of the industry. To do so, it is important to define the assessment criteria which will be used and to conduct a prior, thorough impact assessment by consulting the industries concerned. Moreover, for some ETS sectors with very specific value chains, products, and global trade flows, a CBAM cannot effectively address carbon leakage and reduce emissions. For these sectors a stronger carbon leakage protection is needed.

Secondly, anti-circumvention rules must be strengthened to ensure the effectiveness of the measure and avoid practices such as resource shuffling which allows the exporting third country producers to only export to the EU products with lower carbon footprint while deviating more carbon-intensive products to other markets, or cost absorption, where producers could absorb partially or totally the cost of the CBAM by reducing the price of the products at the EU border and/or by spreading the levy across his entire production. The risk of circumvention must be monitored at customs level, and the authorisation process for CBAM declarants should ensure that they are sufficiently skilled to detect this. Effective enforcement of the new proposed exemption threshold for small importers at 50 tonnes of CBAM goods per year as introduced by the Omnibus package is necessary to prevent circumvention, as economic operators could try to avoid CBAM obligations by artificially importing through multiple entities falling below the threshold.

Finally, AEGIS Europe has been advocating for the adoption of an export adjustment for several years: CBAM needs a WTO-compatible export solution for CBAM sectors to avoid carbon leakage and the replacement of EU low-carbon products with high-carbon alternatives on global markets. European producers already face several challenges in export market, including high production costs (especially energy costs), global overcapacities, and aggressive industrial and trade policies by third-country competitors. An ERCST report stressed that failing to adequately address export issue could lead to a diminished competitiveness, suboptimal capacity utilization, reduced profitability, and eventual plant closures, further exacerbating the financial pressure within the sectors concerned and impacting substantial investment decisions in the near future. We are pleased to see that the need to support EU exporters is gaining increasing prominence in the European Commission’s legislative agenda and industrial discussions, and we eagerly wait for the presentation of the EC’s proposals to solve the exports loophole in CBAM coming in Q2 2025.

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AEGIS Europe is an industry alliance that brings together more than 30 European manufacturing associations representative of the whole value chain, from commodities down to consumer end products. Our Members account for more than €500 billion in annual turnover, as well as for millions of jobs across the EU.

AEGIS Europe reacts on the ERCST Report “Solutions for exports of EU CBAM-covered goods”

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AEGIS Europe reacts on the ERCST Report “Solutions for exports of EU CBAM-covered goods”and asks for an effective export solution, strengthened anti-circumvention measures and thorough industry consultation

Bruxelles, 8 May 2025. AEGIS Europe welcomes the recent publication of the ERCST Report “Solutions for exports of EU CBAM-covered goods” on March 25th. The report provides an in-depth analysis of the main proposals to address exports related carbon leakage that were advanced over the years, and we are glad that AEGIS Europe’s legal study for a WTO-compatible export adjustment has been included in the analysis.

AEGIS Europe has been advocating for the adoption of an export adjustment for several years: CBAM needs a WTO-compatible export solution for CBAM sectors to avoid carbon leakage and the replacement of EU low-carbon products with high-carbon alternatives on global markets, in a context where European producers already face several challenges in the export market, including high production costs (especially energy costs), global overcapacities, and aggressive industrial and trade policies by third-country competitors.

Furthermore, anti-circumvention rules must be strengthened to ensure the effectiveness of the measure and avoid practices such as resource shuffling which allows the exporting to the EU only products with lower carbon footprint while deviating other products to other markets, or cost absorption, where producers could absorb partially or totally the cost of the CBAM by reducing the price of the products at the EU border and/or by spreading the levy across his entire production. The risk of circumvention must be monitored at customs level, and the authorisation process for CBAM declarants should ensure that they are sufficiently skilled to detect this. Effective enforcement of the new exemption threshold for small importers at 50 tonnes of CBAM goods per year as introduced by the Omnibus package is necessary to prevent circumvention, as economic operators could try and avoid CBAM obligations by artificially importing through multiple entities falling below the threshold.

AEGIS Europe supports a CBAM that is efficient in addressing carbon leakage risks while ensuring a level playing field on both European and foreign. To achieve these goals, we believe it is imperative to assess CBAM effectiveness before any extension of its scope to downstream products: this assessment should have as a departing point a consultation of the industry. To do so, it is important to define the assessment criteria which will be used and to conduct a prior thorough impact assessment by consulting the industries concerned. Moreover, for some ETS sectors with very specific value chains, products, and global trade flows, a CBAM cannot effectively address carbon leakage and reduce emissions. For these sectors a stronger carbon leakage protection is needed.

Finally, AEGIS Europe members agree on the ultimate importance of finding a balance between simplification, accuracy and effectiveness of the mechanism in preventing carbon leakage. Moreover, simplification should not facilitate or lead to circumvention, and any effort in this sense should be subject to a comprehensive evaluation. A thorough consultation of the industry, including both CBAM sectors and sectors which might be covered by CBAM, should be conducted, keeping in mind that CBAM alone cannot solve the carbon leakage issue for all sectors, and further measures are needed to achieve decarbonisation.

AEGIS Europe is an industry alliance that brings together more than 25 European manufacturing associations representative of the whole value chain, from commodities down to consumer end products. Our Members account for more than €500 billion in annual turnover, as well as for millions of jobs across the EU.

AEGIS Europe calls for balanced FTAs to ensure fair competition and Industry Competitiveness

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Brussels, April 2025. As the European Union is engaging in negotiations for the conclusion of several Free Trade Agreements (FTAs), AEGIS Europe emphasizes the need for an ambitious approach that prioritizes the European Industry’s strategic interests, based on the principles of fairness, transparency, and reciprocity. While FTAs can be valuable tools to foster economic growth and international cooperation, trade openness must be carefully balanced by ensuring the design of agreements that are able to uphold Europe's economic security, sustainability commitments and reciprocity.

The current energy price crisis and massive—subsidized—overcapacities, combined with unfair pricing strategies that have a permanently disruptive impact on the market, cannot be ignored. Fairness, based on the principle of reciprocity, should therefore be the central principle guiding FTA negotiations.

The EU must ensure a tailored tariff liberalization approach distinguishing between sectors where domestic industries face unfair global competition and those where the EU currently lacks adequate domestic capacity. Unwarranted tariff reductions can undermine industries vital to the EU's strategic autonomy, such as ceramics, steel and glass to name few, and generate dangerous dependencies, particularly when it comes to critical raw materials such as aluminium, silicon and base metals. Sectors already injured by increasing unfair imports of foreign goods manufactured with poor social and environmental standards should therefore be excluded from any trade liberalization scope.

With regard to Trade Defence Instruments (TDI), AEGIS Europe has experienced a lack of procedural transparency in third countries’ investigations, including those with whom FTAs have been signed or are currently under negotiations. It is therefore essential to ensure the continued right of the EU to undertake trade defence investigations against unfair trade and to ensure agreement by all third countries on WTO compliance in their investigations.

Additionally, any public procurement chapter in new FTAs must be approached with caution, to avoid undermining the enforcement possibilities under the International Procurement Instrument and the ability to exclude bidders from countries not complying with fair access obligations.

During trade agreement negotiations, it has also come to our attention that the EU may relax its Rules of Origin (RoO). On the contrary, FTAs must include strict RoO designed in collaboration with EU stakeholders, particularly when FTA negotiations involve countries with lower environmental and governance standards than those of the EU or are profiting from neighboring countries state-induced market distortions. The respect of this principle will prevent the circumvention of our standards and boost investments exclusively in sustainable value chains.

Along the same lines, FTAs should incorporate binding commitments on environmental protection, social standards, and climate goals, reflecting the EU's Green Deal objectives. AEGIS Europe advocates for a progressive mirror clause aligned with ILO conventions and environmental targets, upholding European production standards as a benchmark. Sustainability chapters must include clear provisions on child and forced labor, full compliance with the Carbon Border Adjustment Mechanism (CBAM), and adherence to WTO principles.

In the attached Annex I, AEGIS Europe has gathered the comments of its members regarding the ongoing EU-India FTA negotiations, as an example of the many hurdles that must be overcome to ensure a fair and balanced approach.

To conclude, the European Commission must ensure that all future trade agreements are based on the principles of reciprocity, transparency and fairness. The EU cannot afford to compromise on economic security, environmental goals, or fair competition. AEGIS Europe therefore welcomes the various trade recommendations displayed in the Clean Industrial Deal, which overall align with efforts to preserve Europe’s economic security and resilience.

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AEGIS Europe is an industry alliance that brings together more than 25 European manufacturing associations representative of the whole value chain, from commodities down to consumer end products. Our Members account for more than €500 billion in annual turnover, as well as for millions of jobs across the EU.

Annex I: EU-India Free Trade Agreement

The EU-India FTA exemplifies the challenges of ensuring fair and reciprocal market conditions. While India benefits from significant tariff-free access to the EU market, most European exports to India remain restricted due to high import duties, complex regulatory barriers, untransparent customs procedures, and burdensome certification requirements such as Quality Control Orders (QCOs). The EU must insist on greater transparency and regulatory harmonization to prevent these measures from serving as disguised trade barriers.

From a sustainability dimension, India falls short of European standards, with significant challenges in environmental protection, social welfare, and labour rights. India's reliance on carbon-intensive production methods poses a risk of carbon leakage and weakens the competitiveness of EU firms, which continue to face high energy costs. For instance, Indian metal producers rely almost entirely on coal-fired plants, which generate about 80% of the country's electricity, resulting in significantly higher carbon emissions compared to their European counterparts. Furthermore, as highlighted in the European Commission’s Trade Sustainability Impact Assessment (SIA), India’s excessive water usage, chemical pollution, and labour abuses linked to many of its manufacturing activities cannot be overlooked. Without binding climate provisions and higher sustainability standards, increased access to Indian products will undermine the EU’s decarbonization efforts and the ability of EU producers to compete in the internal market.

Moreover, India’s extensive state subsidies, particularly in the metals, textiles, ceramics and sugar sectors, extend along the whole value-chain and contribute to global trade distortions, requiring stricter scrutiny in the FTA negotiations. According to the OECD, India could add up to 36,4 million tonnes of coal-based steel capacity by 2026. By way of reference, India exported 2,8 million tonnes of finished steel products to the EU in 2023, becoming the second largest source of EU steel imports. Furthermore, India maintains a series of export subsidies and import tariff relief on products such as cast iron products and PET. The European paper and board sector also faces significant trade imbalances, with EU exports to India amounting to just 3% of total EU shipments – half the volume exported to China – despite India’s paper consumption per capita being 15 times lower than in Europe and its market growing by 47% between 2010 and 2021.

India’s aluminium industry is significantly larger than the EU’s, producing 4.1 million tonnes of primary aluminium in 2023 – four times the EU’s output and accounting for 6% of global production. Its largest smelter alone produces nearly twice as much as all eight operational EU smelters combined. Since 2019, EU imports from India have surged by 244%, with the majority consisting of aluminium ingots. Additionally, India’s aluminium industry is expanding both upstream, leveraging competitive access to raw materials, and downstream, leading to a sharp rise in imports of semi finished products.

Similarly, India has quickly become the second largest producer and exporter of ceramic tiles at global level, behind China, as well as the first source of extra-EU imports of ceramic tiles in the Union, with an astonishing 138% increase in imports in five years despite antidumping duties in place since 2023. High overcapacities coupled with low internal demand and ongoing trade defence investigations in several States are likely to boost imports of Indian aluminium and ceramic goods into the EU, which cannot be facilitated further by any trade liberalization.

There is also evidence of dumping in respect to many products originating in India including the dumping of titanium dioxide (TiO2) following the coming into force of anti-dumping measures against China. This is also observed in the case of manhole covers. We urge that India's TDIs be applied in full compliance with WTO rules to ensure a level playing field. Transparency in procedures, access to all non-confidential information, sufficient time to provide comments, and consideration of the public interest are key when conducting investigations.

Finally, India’s reliance on export restrictions for domestic price control, dependence on Russian raw materials and energy supplies, and aggressive use of TDIs – especially anti-dumping measures, making it the top user of such tools at the WTO2 – create further concerns about fair competition and potential abuse of international trade rules. This is further exemplified by India’s behaviour in the India – Tariffs on ICT Goods WTO dispute, and the EU should effectively use the Enforcement Regulation to protect its industries and uphold the rules-based international trade system.

Ensuring that EU exporters have access to transparent procedures and a non-discriminatory trade framework, as well as reciprocity of environmental and social commitments, must be key priorities in the negotiations.

AEGIS Europe statement on U.S. reciprocal tariffs

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Brussels, April 7, 2025. The European Union and the United States maintain the most integrated economic partnership in the world. When considering trade in goods, services, and investment, the transatlantic relationship is unmatched in scale and depth, supporting millions of jobs on both sides of the Atlantic.

On February 13, the White House published a statement announcing the introduction of "reciprocal tariffs" targeting several U.S. trade partners, including the EU. This was swiftly followed by the imposition of duties on European steel and aluminium in March, alongside a sweeping 20 percent tariff on all EU imports, and a further 25 percent global tariff on cars, which entered into force between April 2 and 3. The U.S. administration has indicated it will respond with additional retaliatory measures in case of a European counteraction.

AEGIS Europe is deeply concerned by these developments. We strongly support free and rules-based trade conducted on fair terms. A spiral of retaliatory measures risks triggering a trade war that would have severe consequences for the global economy. Furthermore, U.S. tariffs on a wide range of partners—including China, Canada, Mexico, Japan, and Korea—risk generating trade diversion towards the EU. This is particularly concerning for export-oriented sectors like pulp and paper or ceramics, as well as for industries already facing global overcapacities, such as steel and aluminium, where redirected exports could lead to a surge in imports and drive prices down.

Ultimately, a self destructive trade dispute between the EU and the U.S. would primarily benefit illegally dumped imports and state-subsidized companies from China and other countries contributing to non market overcapacities, when both sides should instead cooperate to rebalance the global market and tackle the root causes of distortions. An escalating trade war between the EU and the U.S. could also affect other sectors like fertilizers and crops, which have already been severely disrupted—first by the pandemic, then by Russia’s war on Ukraine. These two major crises have revealed the vulnerability of the global food system, which cannot sustain higher global food prices. It is therefore essential to avoid placing this system under additional strain through new trade barriers.

In light of these risks, AEGIS Europe encourages the European Commission to act cautiously, maintaining close dialogue with the business community to safeguard European competitiveness and minimize harm to the EU industrial value chains. At the same time, we urge continued engagement in negotiations with the U.S. to de-escalate tensions and maintain the stability of transatlantic supply chains.

However, should negotiations fail and escalation further develop, AEGIS Europe calls on the EU to:

• Respond swiftly, firmly, and proportionately with targeted restrictions on U.S. imports: the aim should be to preserve leverage, deter further escalation, and keep pathways to a negotiated solution open.

• Conduct sector-specific vulnerability assessments: exclude from retaliation lists those products that are essential to EU industries and at risk of supply shortages. The 2018 retaliation list should be reviewed following broad consultations with industry sector representatives, as sectoral trade dynamics have evolved.

• Distribute the burden of retaliatory measures: not only goods but also services—given the substantial U.S. surplus in this area—should be included in the scope of European countermeasures.

• Proactively deploy Trade Defense Instruments (TDIs): monitor trade flows from third countries and be ready to expeditiously activate TDIs to prevent market disruption and protect the EU’s industrial base.

Tariffs would raise costs in the United States and distort trade flows globally. At a time when economic stability is most needed, such measures risk undermining the efficiency and integration of global markets. Maintaining open strategic autonomy as a key objective, while upholding WTO principles, is essential for the European Union to ensure economic resilience and avoid excessive dependence on external actors. A coordinated, measured, and forward-looking response is therefore required to safeguard Europe’s economic interests and support a stable and predictable international trading system.

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AEGIS Europe is an industry alliance that brings together more than 25 European manufacturing associations representative of the whole value chain, from commodities down to consumer end products. Our Members account for more than €500 billion in annual turnover, as well as for millions of jobs across the EU.

AEGIS Europe contribution to public consultation on the FSR Guidelines

AEGIS Europe contribution to public consultation on the FSR Guidelines

AEGIS Europe welcomes the opportunity to submit its input to the European Commission on the upcoming Guidelines requested by 13 January 2026 as per Article 46 of the Foreign Subsidies Regulation (FSR). y

First of all, AEGIS Europe would like to reaffirm that the Foreign Subsidies Regulation represents an important trade autonomous tool to protect the European Industry’s competitiveness and guarantee a level playing field on the Single Market, be it for public procurement or concentrations.

Regarding articles 4 and 5 of the FSR on the identification of subsidies most likely to distort the internal market, AEGIS Europe believes that a number of foreign subsidies should be considered to have a distortive effect on a per se basis, notably all subsidies to beneficiaries active in sectors: 

• Characterised by structural excess capacity. 

• Featuring high-tech and/or dual-use products to a significant extent; or,

• Designated as strategic by the government providing the subsidies (e.g. in policies such as Made in China 2025).

Also to be considered distortive per se should be foreign subsidies to operators which have privileged and/or protected access to a significant non-EU market, especially if the non-EU market is the operator’s domestic market. The ability of non-EU companies to accept unfavourable or unconventional contract conditions should also be deemed as an indicator of such companies receiving a subsidy. Finally, these indicators should be assessed collectively rather than separately.

Regarding the balancing test, AEGIS Europe insists that a balancing assessment must start from the presumption that there is a fundamental and strong EU interest in favour of removing the effects of distortive foreign subsidies, especially those endangering sustainable and diversified supply chains and the preservation of a strong industrial base in Europe. In addition, because a balancing assessment must involve an adequately transparent and coherent analysis of both short-term and medium-term impacts of the distortions in question, the Commission should carry out full and timely consultation of relevant EU industries and give meaningful consideration of their input.

When considering commitments and redressive measures, we believe that the repayment of the foreign subsidy is normally not to be considered an adequate redressive measure. Furthermore, there should be limits on the commitments that the Commission may accept in lieu of redressive measures, especially in cases of less than full cooperation. In particular, the Commission should not be allowed to accept commitments in cases of significant or full non cooperation.

In public procurement procedures, it is worth highlighting a few relevant points. In recent years, there has been an increasing influx of bidders from economic operators from third countries. If we consider that EU funds (e.g. European Structural and Investment Funds, Connecting Europe Facility) can be involved and de facto awarded to economic operators, distorting competition based on price, this is even more relevant as it can contribute to a decreased competitiveness of EU companies. This situation has been documented notably by the OECD in its publications on measuring distortions in international markets (e.g. rolling stock value chain, aluminium, semi-conductors). This situation can lead to a loss of market share and deindustrialisation of the EU, as well as having negative effects on competition in the Single Market.

Coupled with increasing contractual requirements and award criteria focused mostly if not exclusively on price, European companies could be discouraged to submit bids due to low chances of winning – which would be detrimental to the quality of the solutions supplied to public authorities. The threshold of EUR 250 million for public procurement is high and fails to capture many important projects, for example in the construction or rail supply industries. Hence the power of the Commission to request the notification of foreign financial contributions in a public procurement procedure below the notification thresholds is key given the easy circumvention of the instrument by foreign economic operators. In any case the ex officio mechanism should be efficiently utilised, especially if the threshold remains unchanged.

When an economic operator has been targeted by a public procurement investigation and if either the investigation is not terminated or results in determination that the company at stake has received distortive foreign financial contributions, there must be an automatic investigation if this company participates in other tenders – be it above OR below the threshold.

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AEGIS Europe is an industry alliance that brings together more than 30 European manufacturing associations representative of the whole value chain, from commodities down to consumer end products. Our Members account for more than €500 billion in annual turnover, as well as for millions of jobs across the EU.

AEGIS Europe’s calls for more decisive action following the Clean Industrial Deal

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Brussels, 27 February 2025. The European Commission released its much-awaited Clean Industrial Deal, honoring the pledge outlined in the Commission’s 2024-2029 Guidelines to introduce a new deal within the first 100 days of President von der Leyen’s second term.

Confronted with soaring energy costs, global overcapacities and unfair trade practices, the European Union must be acting boldly and rapidly to address these pressing issues, as highlighted by the Draghi report. The plan devised by the Commission must ensure that the EU’s industrial competitiveness and quality jobs are not sacrificed while pursuing sustainability goals.

For these reasons, AEGIS Europe highly appreciates the acknowledgement from the European Commission that public procurement policies are a powerful instrument to support jobs and value creation in the EU. For years, the Alliance has been advocating key reforms in the EU public procurement framework to ensure that European public investments and associated tenders widen the application of non-price criteria as well as European value and preference.

It will therefore be key that the revision of the public procurement framework, expected in 2026, enforces these criteria and enshrines provisions on third country bidders as per the ruling of the Court of Justice of the European Union on the Case-652/22 (Kolin case).

Finally, given the aggressive export strategies enacted by certain foreign competitors, we believe that a ‘made-in Europe’ approach, as mentioned by Executive Vice-President Séjourné, should become a cornerstone of the new Commission’s agenda.

AEGIS Europe welcomes the Commission’s commitment to identify viable solutions to support exporters, as part of the comprehensive CBAM review foreseen for Q3 2025. However, the document does not sufficiently recognize the importance of an export adjustment within the mechanism, nor does it outline practical solutions for its design. Evidence suggests that discontinuing Emissions Trading System (ETS) free allowances without a viable export solution will increase carbon costs for EU companies and overall global CO₂ emissions, creating unprecedented risks for jobs and investment, and jeopardizing the goals of the EU Green Deal. AEGIS Europe calls for the introduction of a WTO compatible export adjustment to ensure a level playing field in export markets, safeguard EU competitiveness, and effectively prevent carbon leakage. Industrial policy alone will not suffice to guarantee the success of European industry.

A more assertive application of the EU Trade Defense Instruments (TDIs) is essential to counteract rising industrial overcapacities from foreign competitors—now extending beyond China. AEGIS Europe has been advocating for years the need for an instrument specifically designed to address global overcapacities. Therefore, we fully endorse the Commission’s commitment to sharpening existing trade defence tools, speeding up proceedings and designing additional instruments, including adjusted tariffs to the maximum levels as necessary, relying notably on exceptions for environmental protection. However, these positive steps require additional human resources within the EC and a clear implementation timeline—both absent from the adopted document—raising serious concerns about the Commission’s commitment to concrete action.

Finally, AEGIS Europe calls for a comprehensive EU’s industrial strategy: no sector should be excluded. Supporting energy intensive industries – alongside clean technologies – is a step in the right direction, as the Competitiveness Compass recognized them as the “backbone of the European manufacturing industry.” An inclusive approach in the implementation of the Clean Industrial Deal—combining fair trade policies, decisive external action and a robust industrial strategy across the entire value chain—is essential to securing Europe’s industrial future in an increasingly uneven global playing field.

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AEGIS Europe is an industry alliance that brings together more than 30 European manufacturing associations representative of the whole value chain, from commodities down to consumer end products. Our Members account for more than €500 billion in annual turnover, as well as for millions of jobs across the EU.

AEGIS Europe welcomes judgement of the ECJ (Case-652/22) Kolin Case - Public Procurement

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Brussels, 27 January 2025 - On October 22nd, 2024, the Court of Justice of the European Union (CJEU) issued a ruling in the Kolin Inşaat Turizm Sanayi ve Ticaret case (C-652/22 – the “Kolin case”).

The case concerns a request for a preliminary ruling directed to the CJEU by a Croatian Court, during the proceedings to assess the legality of a decision to award a contract for the construction of a railway infrastructure to a competing bidder of the Turkish company Kolin. The competing bidder was allowed to amend its bid after the deadline for submission and Kolin argued that there was a violation of the principle of equal treatment. The CJEU upheld that bidders originating from a third country, which has not signed an international agreement on public procurement with the EU, cannot claim equal treatment with other bidders in this area and cannot effectively invoke the provisions of the EU public procurement directives.

AEGIS Europe welcomes this ruling as a major and positive development, having argued for years that these foreign bidders – especially from China – should not be treated in the same way as European bidders, considering the lack of reciprocity and the numerous market entry barriers (localisation requirements, discrimination in public procurement procedures to name a few). This was the outcome of many years of legal uncertainty, despite the positive interpretation of a Guidance on the participation of third country bidders in the EU procurement market published by the European Commission in 2019.

Nevertheless, AEGIS Europe has identified critical points that still need to be addressed in order to guarantee the positive and durable effects of this ruling:

a) At present, there are no legal acts governing the access of third-country contractors to public procurement procedures in member States, despite it being an exclusive EU competence. Therefore, the CJEU stated that it is up to a particular contracting entity to assess whether it should allow such a contractor to participate in a procedure. This poses significant challenges and creates legal uncertainty for contracting authorities but also for bidders themselves (which third countries are affected by the decision, how to assess what can legally be done etc.). It is crucial that this decision and the principle of non-equal treatment are formally enshrined in legal acts to guarantee legal certainty.

b) The risk of circumvention linked to EU based entities being ultimately controlled by foreign entities originating from countries with which the EU has no international agreement on public procurement, or to consortia involving both a European entity and a foreign one. AEGIS Europe strongly believes that the announced revision of the EU public procurement directives in 2026 constitutes a unique and crucial opportunity to implement the outcome of the Kolin case. It is even more important now that the European Commission confirmed, in the newly released Competitiveness Compass, the introduction of a European preference in public procurement for critical sectors and technologies, recognizing the importance of safeguarding European capacities against unfair competition, global overcapacities and market access restrictions.

Media contact: email: info@aegiseurope.eu | www.aegiseurope.eu

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About AEGIS Europe: AEGIS Europe is an industry alliance that brings together more than 30 European manufacturing associations and companies representing the whole value chain from metals and ceramics to transportation industries committed to manufacturing in the EU on a truly level playing field ensured by a rules-based free and fair international trade. Our members account for more than €500 billion in annual turnover, as well as for millions of jobs across the EU.