JAPAN plans to urge the European Union to revise a proposed policy favoring electric vehicles made in the bloc as it could put Japanese makers at a disadvantage, a source close to the matter said Thursday.

The government will raise the issue at the Japan-EU High-Level Economic Dialogue in Brussels in May and urge that vehicles made outside of the bloc be treated fairly when sold in the market, the source said.

Following the ministerial meeting, Japan hopes the issue will be discussed at a regular bilateral summit, to be held possibly in June, the source said.

The European Commission proposed the Industrial Accelerator Act (IAA) on 4 March 2026, as a central component of its Clean Industrial Deal. The Act aims to boost the EU’s industrial competitiveness by creating “lead markets” for low-carbon and European-made products through public procurement and subsidy.

The proposal requires the approval of EU member states and the European Parliament and could be revised. — Kyodo

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