EU Requests Speedy Resolution of US Green Subsidy Law
US Green Subsidy Law
The EU claims the $430 billion Inflation Reduction Act, set to go into effect in January, will disadvantage it by elevating the United States to the top of the global market for electric vehicles.
Ministers from the European Union cautioned on Friday that time was running out to settle differences with Washington over American plans to offer tax credits to consumers purchasing electric automobiles and other environmentally friendly items as long as they are manufactured in North America.
All 27 EU nations are concerned, according to Jozef Sikela, minister of Czech trade and industry. Before a gathering of national trade ministers, he told reporters that time was running out and that he hoped a resolution would be reached by December 5, when senior U.S. and EU officials will meet.
A joint U.S.-EU taskforce established at the beginning of November to resolve the issue was scheduled to update ministers on its achievements.
The legislation, according to Dutch Trade Minister Liesje Schreinemacher, is “extremely worrying,” and the taskforce needs to “get moving” and deliver results as quickly as possible.
Leo Varadkar, the deputy prime minister of Ireland, stated that an agreement between the EU and the US would ideally be reached at the Trade and Technology Council meeting in December, but in the event that this did not happen, the EU would have to respond.
The U.S. shift to a greener economy, according to French Minister Olivier Becht, should be based on fair competition rather than with actions that violate WTO regulations.
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He stated that ministers would talk on how to get the US to change its law. If not, the EU would need to take “additional steps.”
he further added that “There is a range of measures that can be put on the table. The objective would not be to launch into a subsidy race, which would be counter-productive,” .