The gigantic American investment plan on climate transition, which establishes “discriminatory” measures against European car manufacturers, is “unacceptable” for the Twenty-Seven, estimated Monday the Czech Minister of Industry, whose the country holds the rotating presidency of the EU.
“I will be direct: it is unacceptable for the EU. As it stands, this text is extremely protectionist, to the detriment of European exports. This point must be clarified”, underlined Jozef Sikela, before a meeting of European ministers Commerce in Prague, where their American counterpart Katherine Tai is to speak.
Ratified this summer, “theInflation Reduction Act“Set up by Joe Biden appears to be the biggest investment ever decided in the fight against climate change. It provides 370 billion dollars for the construction of wind turbines, solar panels and electric vehicles.
One measure in particular ruffles Europeans: a tax credit, up to $7,500, reserved for the acquisition of an electric vehicle coming out of a North American factory with a locally manufactured battery – thus excluding cars produced in the EU.
US Trade Ambassador Katherine Tai was to meet at midday with her counterparts from the Twenty-Seven in the Czech capital.
“I want to send him a strong signal, to tell him that we demand to have the same status as Canada and Mexico”, whose production enjoys the same advantages as that of the United States in the measures adopted, said Mr. Sikela.
“There are concerns about this text and its discriminatory provisions. We have set up a working group with the United States to deal with these problems”, insisted for his part the European Commissioner for Trade, Valdis Dombrovskis, on his arrival. in the meeting.
“It is very important that we cooperate closely as strategic allies, especially in the current situation”, between the war in Ukraine and the energy crisis, he added.
Mr Dombrovskis had said in September that the EU was assessing whether the new US law violated World Trade Organization rules.
Brussels and Washington have had several major disputes before the WTO in recent years, in particular over aid to the American aircraft manufacturer Boeing and US customs duties aimed at European steel.
Three weeks ago, German Chancellor Olaf Scholz was already worried about the commercial consequences of the American investment plan on the climate transition, judging that it risked start “a huge tariff war“by introducing discrimination against foreign companies. Germany is home to car giants Volkswagen, BMW and Mercedes.
“I will be direct: it is unacceptable for the EU. As it stands, this text is extremely protectionist, to the detriment of European exports. This point must be clarified”, underlined Jozef Sikela, before a meeting of European ministers Commerce in Prague, where their American counterpart Katherine Tai is to speak. Ratified this summer, the “Inflation Reduction Act” set up by Joe Biden appears to be the biggest investment ever decided in the fight against climate change. It provides 370 billion dollars for the construction of wind turbines, solar panels and electric vehicles. One measure in particular bristles Europeans: a tax credit, up to 7,500 dollars, reserved for the acquisition of a vehicle electric coming from a North American factory with a locally manufactured battery – therefore excluding cars produced in the EU. The American Trade Ambassador Katherine Tai was to meet at midday with her counterparts the Czech capital.”I want to send him a strong signal, to tell him that we demand to have the same status as Canada and Mexico”, whose production benefits from the same advantages as that of the United States in the measures adopted, said Mr. Sikela. “There are concerns about this text and its discriminatory provisions. We have set up a working group with the United States to deal with these problems,” insisted the European Commissioner for Trade. e, Valdis Dombrovskis, upon his arrival at the meeting. “It is very important that we cooperate closely as strategic allies, especially in the current situation”, between the war in Ukraine and the energy crisis, he added. Dombrovskis said in September that the EU was assessing whether the new US law violated World Trade Organization rules. Brussels and Washington have had several major WTO disputes in recent years, including over aid to the aircraft manufacturer. American Boeing and American customs duties targeting European steel. Three weeks ago, German Chancellor Olaf Scholz had already expressed concern about the commercial consequences of the American investment plan on climate transition, judging that it risked trigger “a huge tariff war” by introducing discrimination against foreign companies. Germany is home to automotive giants Volkswagen, BMW and Mercedes.
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