Friday, U.S. exchange representative Katherine Tai met with European Union governmental vice president Valdis Dombrovskis to discuss U.S.-EU relations. Tai’s office issued a statement regarding the Inflation Reduction Act.
European nations are concerned that the $369 billion in U.S. subsidies for electric vehicles and other simple technologies could disadvantage European-based corporations.
European leaders are concerned that the local content requirements of the subsidies, which primarily benefit U.S.-based manufacturers, may also attract companies outside of Europe.
The law disqualifies from tax credits in the United States electric motors assembled outside of North America.
“Ambassador Tai expressed optimism that the United States and the European Union will continue to work closely together on their shared goal of strengthening the global clean energy region,” Tai’s office said after the meeting on the sidelines of the Munich security conference.
The EU must receive the same treatment as U.S. trade partners Canada and Mexico. Whose production is essentially included in the subsidy schemes. The Congress is out of the question.
Not only European nations have raised concerns about the Inflation Reduction Act. Additionally, South Korea has sought discussions with the United States on this matter.
European Commission and White House have formed a high-level task force to discuss the issue.
Tai and Dombrovskis also discussed ongoing negotiations for a global agreement on sustainable metals and aluminum. Thereafter they agreed to maintain close contact as negotiations continue in 2023, according to the USTR office.
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