World House-EU and US cannot agree on law on subsidies
2022.12.08 15:06
World House-EU and US cannot agree on law on subsidies
Budrigannews.com – According to EU trade chief Valdis Dombrovskis on Thursday, the European Union should not anticipate talks with the United States to resolve all of the issues it sees in the U.S. Inflation Reduction Act and is not ruled out any potential response.
The European Union argues that the $430 billion act, which gives consumers tax credits for green products and electric vehicles (EVs) made in the United States, could make the United States the world leader in the EV market, hurting Europe.
The two sides have formed a task force to talk about the issue. The EU wants the same exemption that Washington gives to partners in free trade agreements like Canada, Mexico, and Australia.
Dombrovskis told the trade committee of the European Parliament that he expected the task force to provide a report by next week, preferably before the end of the year, when some parts of the act go into effect.
He told lawmakers, “And then we’ll see to what extent our concerns are taken into consideration.” It will solve some of our issues, but not all of them.”
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Dombrovskis stated that the European Union would have to consider its response at that point, adding that the group did not want to get into a race for subsidies.
“We are not excluding any other possibilities. We are not saber-rattling either, although some of our colleagues raised the issue of a WTO challenge. We are concentrating on negotiations right now,” he stated.
Dombrovskis asserted that Antony Blinken, the Secretary of State of the United States, had mentioned potential American options to alleviate EU concerns, such as loosening the definition of “free trade partner” so that the EU could be granted an exemption.
