The US and the EU noted progress in resolving EU concerns about a US climate plan that would bar the bloc’s electric vehicles from US tax incentives. But, there is still no full solution.
After the third ministerial level of the U.S.-EU Trade and Technology Council (TTC) promised to work constructively to resolve it, they released a joint statement.
The statement took notice of the advancements made by a task force formed to resolve the dispute. It stated that the EU’s concerns will be considered. Also, it says the US is determined to address them constructively.
Dombrovskis: IRA is unfair to European electric vehicles producers
EU Trade Commissioner Valdis Dombrovskis thinks the $430 billion U.S. Inflation Reduction Act is unfair. He urged action to be taken to change the law before the year is through. It provides buyers with tax credits of $7,500 for brand-new Tesla, Ford, and other North American-made electric vehicles, which the EU worries could seriously harm European EVs sales.
The council, according to U.S. Secretary of State Antony Blinken, allowed both parties, who together represent 40% of the world’s economic output, to make practical, concrete progress on important issues, such as halting Russia’s war in Ukraine. He also expressed confidence that the tax credit issue is resolvable.
The talks lasted six hours. They were on the campus of the University of Maryland in College Park, close to Washington, D.C. After the talks he said that these meetings are very positive, fruitful path forward for both the European Union and the United States. Prior to the meeting, Dombrovskis told the media that the new U.S. law threatened to undo the progress the transatlantic forum had made in mending trade ties between the United States and the EU’s 27 members.
He added that the sides are moving forward with all of the negotiations, but with the Inflation Reduction Act, there is moving backward two steps. Dombrovskis said there is a need to reconcile that. Later he told reporters he felt a little more upbeat.
The task force is rushing to achieve a settlement before some of the restrictions take effect next year, according to a source with knowledge of the negotiations. Other participants included European Commission Vice President Margrethe Vestager, U.S. Trade Representative Katherine Tai, and Secretary of Commerce Gina Raimondo of the United States.
If there is good will the law is changeable
French President Emmanuel Macron told the media that this is a “job killer” for Europe during a state visit to Washington last week.
It is still unclear how changing the law will occur to simplify the procedure for European nations to take part in the credits. U.S. President Joe Biden told French President Emmanuel Macron in Washington that it is possible.
French officials expressed hope that the White House will issue an executive order that would grant Europe a reprieve without requiring changes from Congress, which the White House is trying to avoid.
Officials in South Korea have also criticized the law on limitation of foreign electric vehicles in US.
In its first two meetings, the TTC concentrated on regulatory cooperation and forging an alliance against China’s anti-market economic activities.
Officials reached an agreement on a “shared roadmap” to evaluate reliable artificial intelligence technologies. They also established a task group to lower impediments to research into quantum computing science and technology.
They also committed to enhancing openness on future governmental subsidies to the semiconductor industry and agreed to assist connectivity initiatives in developing nations.