Europe claims the US deflationary measures are discriminatory, fearing an impact on manufacturing. | So Good News

Member States of the EU have expressed concern about the discriminatory provisions contained in the US Inflation Reduction Act (IRA) and the potentially significant consequences on their competitiveness and investment decisions, particularly on important sectors of EU business. transitioned to a green economy.

Jozef Sikela, President of the EU Trade Council, said: “We are very concerned about the significant impact of the US deflationary act following the meeting of European trade ministers.”

“Many of the green subsidies provided by the EU discriminate against the automotive, renewables, battery and energy industries are concerns for the EU. This is something that I and many of my colleagues have repeatedly discussed with US interlocutors,” said EU Trade Commissioner Valdis Dombrovskis.

“What we demand is justice,” he added.

“We expect European companies and exports to be treated the same way in the U.S. as American companies and exports are treated in Europe.”

Both Sikela and Dombrovskis stressed the need to avoid a “aid race” between the EU and the US, which is dangerous; He explained that it was expensive and ineffective, Xinhua news agency reported.

These issues are being discussed in the Joint High Level Group. The upcoming Trades and Technology Council (TTC) meeting on December 5 will have an opportunity to address the situation.

The TTC is a major global trade between the EU and the US. A platform to negotiate approaches on economic and technological issues and deepen transatlantic trade and economic relations.

“In the current geopolitical context, bearing in mind our shared green targets, we should build alliances in these important sectors – be it batteries, renewable energy or recycling,” the EU trade commissioner said.

Signed in mid-August, the IRA provided a record $369 billion in climate and energy support. The landmark package includes tax credits for North American-made electric vehicles and supports US battery supply chains.