Will there be a trade conflict between the US and the EU?
2022.12.05 03:33
Will there be a trade conflict between the US and the EU?
Budrigannews.com – At a trade meeting on Monday, high-ranking officials from the European Union intend to voice their disapproval of the bloc’s exclusion of electric vehicles from tax credits in President Joe Biden’s signature climate law.
The first two meetings of the U.S.-EU Trade and Technology Council (TTC), a transatlantic forum for dialogue that has been in existence for a year, were devoted to collaborating on regulatory matters and presenting a united front against China’s non-market economic methods.
However, the 27-country group is concerned that the $430 billion Inflation Reduction Act, which provides Tesla (NASDAQ:) with generous tax credits of $7,500,European automakers will suffer significantly from Ford and other EVs produced in North America.
According to representatives from both the United States and the European Union, the topic will be discussed at the TTC meeting that will take place on the campus of the University of Maryland in College Park, Maryland.
U.S. Trade Representative Katherine Tai, U.S. Secretary of State Antony Blinken, and the Executive Vice Presidents of the European Commission, Valdis Dombrovskis and Margrethe Vestager, are also present.
The two sides are expected to say, “We acknowledge the European Union’s concerns and underline our commitment to address them constructively” in a draft of a joint statement that will be released later on Monday, December 1.
Reuters was given a copy of the draft document, which may or may not have been revised, but it did not specify specific steps to take to settle the dispute.
A statement from the White House National Security Council stated, “The Inflation Reduction Act will be part of the range of discussions on trade.”
A newly established task force was “committed to continuing to understand EU concerns,” according to the spokesperson.
According to the spokesperson, the meeting would result in the creation of a task force to reduce research barriers related to quantum computing science and technology and a “joint roadmap” on evaluating and measuring trustworthy artificial intelligence technologies.
At the G20 Summit that took place last month in Indonesia, officials from Europe and South Korea criticized the Inflation Act.During his state visit to Washington this past week, French President Emmanuel Macron stated to CBS that it would “kill jobs” in Europe.
In Washington, Biden told Macron that the law might be changed in a way that makes it easier for European nations to participate in the credits.
French officials say they hope the White House will issue an executive order that spares European nations the need to ask Congress for changes, which the White House wants to avoid.
