Two interacting (classical or quantum) particles correspond to a dynamics where the first particle at x immediately responds to the second far away particle at y by the force obtained as the gradient of the potential V(x-y). This is an action at a distance in Newton's sense (and can be cast in terms of the variation of a nonlocal action in Lagrange's sense). Thus it is spooky in Einstein's sense.
Well, this leads to fully local QED; the apparent nonlocality is an artifact of the gauge in which the theory is written.
Of course one can write any local theory in nonlocal terms, but this does not make it nonlocal, or change the fact that everything observable is local in the sense of
extended causality.