Australia, Canada, Japan trade bodies warn EU made-in-Europe push could sideline foreign firms

Trade bodies in Australia, Canada and Japan have warned that the European Union’s new push to favor homegrown cloud, artificial intelligence and semiconductor technologies could leave non-EU firms on the sidelines.

The criticism comes after the European Commission unveiled its technology sovereignty package on June 3, a plan that includes a Cloud and AI Development Act and a Chips Act 2.0 aimed at reducing dependence on U.S. tech providers.

According to Reuters, the groups behind the warning include the Tech Council of Australia, the Canada EU Trade and Investment Association, the Japan Association of New Economy and CCIA.

Their concern is that a “made-in-Europe” drive could be translated into procurement and market-access rules that favor EU suppliers over foreign competitors, even in areas where the bloc has traditionally relied on imported technology.

The Commission has framed the package as part of a broader effort to strengthen Europe’s digital autonomy and resilience. The proposals cover semiconductors, AI and cloud computing, but it remains to be seen how member states will turn them into practical purchasing rules.

The backlash adds an early trade angle to a policy push that is still being shaped. Industry groups are now likely to press for changes as the plans move toward implementation, particularly if the measures begin to affect access to public-sector contracts or regulated technology markets.