The EU Space Act Could Cost the U.S. Billions; Negotiating an Equivalence Decision Could Mitigate Those Costs

July 28, 2026

The EU Space Act could impose billions in incremental compliance costs on U.S. companies, which would lead to increased market prices, reduced U.S. exports, reduced U.S. tax revenues, harm to the U.S. space industry's global competitiveness, increased global market share in dual-use space assets for China, and by extension harm to U.S. national security interests. If the EU recognized existing U.S. practices and international standards as equivalent to most EUSA requirements, the equivalence decision would save U.S. companies over $1 billion through 2035, mitigating the harms.

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