It is meant to save Europe's auto industry from China's unfair trade practices. The European Union's Industrial Accelerator Act (IAA) , proposed in March, seeks to upgrade European car factories and only subsidize vehicles produced in Europe. Yet, the EU's "Made in Europe" plan is causing deep concern among other allied carmaking nations — such as Turkey , Morocco , Japan and South Korea — all of them deeply embedded in European supply chains. After months of deadlock over the IAA's potential impact on their own vehicle production, Germany and France earlier this month reached a key compromise that would allow suppliers from non-EU members like the United Kingdom and Norway to qualify for "European origin" status.
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