EU Rail Supply: Tackling Chinese Competition & FSR for Sustainable Rail

Introduction

UNIFE has called for fair competition between the European rail supply industry and third countries, specifically addressing the increasing presence of Chinese-manufactured vehicles used by some European operators. This situation underscores the need for political action and corrective measures.

Fair Competition and Strategic Procurement

The European rail supply industry stresses the importance of maintaining competitiveness through fair practices, supportive regulation, and strategic procurement policies. This is especially crucial in response to distortive foreign subsidies from state-owned non-European competitors. UNIFE advocates for a streamlined legal framework and transparent tender evaluation centered on life-cycle costs. The industry supports a European preference that prioritizes security and European value creation.

Monitoring of Foreign Subsidies

UNIFE supports enhanced monitoring of foreign subsidies under the Foreign Subsidies Regulation (FSR) to combat market distortions and promote fair competition. The industry is committed to reducing costs through harmonisation, interoperability, and economies of scale. The goal is to deliver high-quality, sustainable products that benefit both European and international markets while safeguarding European security and jobs. The European rail supply industry welcomes the support from the European Commission.

Regulatory Framework and Procurement Procedures

The European rail supply industry advocates for systematic monitoring of problematic actors. It emphasizes the industry’s willingness to contribute to combating distortions caused by foreign subsidies. The industry supports the upcoming revision of the Foreign Subsidies Regulation (FSR) and calls on the European Commission to simplify procedures and close loopholes, such as those related to private procurement and leasing. It also seeks to lower the public procurement notification threshold to better capture urban transport projects.

Security and Exclusion of Unreliable Suppliers

To ensure security, bids from third countries must be carefully examined. Suppliers without secured access to the European market and those potentially posing a threat to European security should be excluded. Particularly concerning is the supply of critical technologies from countries that are not reliable and do not share European values, especially in the context of rail military mobility.

Conclusion

UNIFE calls for fair competition in the European rail supply industry, addressing the use of Chinese-manufactured vehicles by some European operators. The industry emphasizes fair practices, supportive regulation, and strategic procurement policies, as well as enhanced monitoring of foreign subsidies, and the need for a more efficient legal framework. The exclusion of unreliable suppliers to guarantee security is also emphasized.

Company Summary

UNIFE: UNIFE represents the European rail supply industry, advocating for fair competition, supportive regulations, and strategic procurement policies within the sector.

Technology

Foreign Subsidies Regulation (FSR): The FSR is a regulation focused on the monitoring of foreign subsidies to combat market distortions and promote fair competition.