U. S. takes into account interests of EU in law of green subsidies
2023.01.17 15:15
U. S. takes into account interests of EU in law of green subsidies
By Ray Johnson
Budrigannews.com – U.S. Trade Representative Katherine Tai stated on Tuesday that the United States has prioritized addressing European Union concerns that the U.S. green subsidies law will attract clean tech businesses to the United States at the expense of Europe.
In a separate statement, Tai’s office said that a tariff rate quota agreement for agricultural products has also been signed by the United States and the European Union.
The U.S. Inflation Reduction Act, which came into effect this year, included $369 billion in investments to combat climate change. The European Union has expressed serious concerns regarding these investments.
Subsidies represent a significant portion of the investment, which is restricted to local content.
In October, the transatlantic trading partners established a task force to deal with these issues.
Before meeting with EU counterpart Valdis Dombrovskis, Tai told reporters at a briefing that the task force was working hard. She stated that the issues were complicated and significant, both in terms of addressing the climate crisis and U.S.-EU relations.
Tai stated, “In terms of the work of the task force, what I would say is that it is ongoing and has the highest priority placed on it by President Biden himself.”
The United States had become increasingly aware that supply chains’ vulnerability had been exposed by crises like the COVID-19 pandemic and geopolitical tensions, and that “friend-shoring,” or placing more of the chain in partner nations, increased resilience.
Tai stated that the United States of America wanted to develop complementary trading policies with its allies rather than establishing its own entirely domestic supply chain.
In addition, the transatlantic partners have until October to agree on a trading regime to encourage low-carbon steel and aluminum production and address overcapacity in the global steel sector.
Steel and aluminum tariffs imposed by President Donald Trump during his time in office were lifted by the United States in October 2021 for a period of two years.
Tai responded, “there’s always that chance,” when asked if the tariffs could be reimposed. He added that the possibility had provided a real incentive to work hard. She said that the problem was coming up with a solution that worked for two different systems.
She stated, “So, January 2023.” This is the time when we get right to the point.
According to Tai’s office, “the Agreement, once implemented, will enable the United States to preserve its existing access to the EU market for various agricultural commodities following the United Kingdom’s exit from the EU on January 1, 2021.”
Additionally, “restore favorable market access for multiple U.S. agricultural products, including for U.S. rice, almonds, wheat, and corn,” the agreement will allow the United States to maintain its current access to the EU market for various agricultural commodities.
