US and EU Space Talks Reveal Tensions Over New Regulations

The United States and the European Union have publicly affirmed their commitment to space cooperation following a high-level dialogue. However, a new joint statement highlights underlying friction regarding the EU's proposed Space Act, which U.S. officials and industry leaders argue could create significant trade barriers for American companies.

The 13th U.S.-EU Space Dialogue, held on September 8 and 9, brought together senior officials to discuss commercial space activities, security, and safety. A statement released on September 10 emphasized fair trade, but concerns remain that the EU's new regulatory framework may favor European firms at the expense of international partners.

Joint Statement Follows High-Level Dialogue

Senior government officials from the United States and the European Union convened for a two-day meeting to address the future of transatlantic space collaboration. The discussions, which took place on September 8 and 9, also included a roundtable session with prominent leaders from the U.S. space industry.

Following the dialogue, a joint statement was issued on September 10. The document outlined a shared vision for cooperation in areas such as commercial space ventures, operational safety, and security in orbit. It specifically reiterated a commitment to principles of fair and balanced trade.

This emphasis on trade fairness is significant. It directly references a previous agreement made on August 21, 2025, between U.S. President Donald Trump and European Commission President Ursula von der Leyen, which aimed to ensure a mutually beneficial trade relationship.

EU Space Act Becomes a Source of Friction

The timing of the dialogue is critical, coming just a few months after the European Union published its draft legislation for a new EU Space Act in June. This proposed law is designed to establish a comprehensive regulatory framework for all space activities within the EU, promoting industry innovation while ensuring safety and sustainability.

However, the proposal has been met with significant resistance from the United States. Policymakers in the Trump administration and leaders in the American space sector have voiced strong objections, asserting that the act, in its current form, would function as a non-tariff trade barrier.

U.S. Industry Warns of Market Barriers

American companies argue that the EU Space Act would impose conditions that make it difficult for non-EU firms to operate in the European market. These concerns center on several key areas:

• Differing Technical Standards: The act could establish unique European standards that diverge from widely accepted international norms.
• Mandated Design Features: Companies might be forced to re-engineer satellites and other hardware specifically for the European market.
• Additional Authorizations: U.S. firms could face a new layer of bureaucracy and licensing requirements, increasing both costs and operational delays.

Brian Huseman, Vice President of Public Policy & Community Engagement at Amazon, articulated these concerns at the U.S. Chamber of Commerce Global Aerospace Summit on September 11. He stated that the legislation appears to prioritize EU-based companies over their U.S. counterparts, effectively creating an uneven playing field.

"The EU Space Act, as proposed, seems designed to give a competitive advantage to European companies," Huseman noted during the summit.

Conflicting Regulatory Philosophies

A major point of divergence between the U.S. and EU approaches lies in environmental and sustainability regulations. The EU Space Act includes provisions aimed at ensuring the long-term sustainability of space activities, a key pillar of the legislation that reflects broader European policy goals.

This contrasts sharply with the policy direction of the Trump administration, which has consistently worked to roll back environmental regulations. For example, a July proposal from the Environmental Protection Agency (EPA) sought to rescind rules limiting fossil fuel emissions and mandates for electric vehicles. This general bias against stringent environmental oversight extends to the U.S. space industry's perspective on the EU's proposed rules.

European Competitiveness Also a Concern

Criticism of the EU Space Act is not limited to the United States. Some analysts and industry figures within Europe have expressed worries that the new regulations could inadvertently harm the continent's own space sector.

The primary concern is that adding layers of regulatory burdens could stifle innovation, particularly for startups and smaller companies that lack the resources to navigate complex legal requirements. This could slow down the scaling of new ventures and make the European market less dynamic.

Furthermore, the regulatory approach of the Space Act appears to contradict the recommendations of a highly influential report on European economic competitiveness. The Draghi report, published in September 2024, advocated for reducing red tape and fostering a more pro-business environment to boost the EU's global standing. The proposed space legislation is seen by some as a step in the opposite direction, potentially undermining wider efforts to enhance European economic strength.