EU electric carmakers may soon level the playing field with US electric car makers for subsidies: Details

news7f11/12/2022

4 1 minute read

EU Electric Car Makers May Soon Have Level Playing Field With US EV Manufacturers For Subsidies: Details

European Union and US officials hope to reach an agreement that would allow EU companies, including electric carmakers, which have a similar position to US companies in the US market, to avoid what the EU calls discrimination against its manufacturers under the US Inflation Reduction Act.

The EU says that although it allows the government to reduce taxes or subsidies on US purchases of electric cars, such as those made by TeslaThe United States makes such assistance conditional on automobiles or vehicle parts manufactured in the United States.

European Commission Vice President Valdis Dombrovskis, responsible for trade, will hold talks on Thursday and Friday with US Trade Representative Katherine Tai, Trade Minister Gina Raimondo and Finance Minister Janet Yellen on this issue.

“Last month Tesla Model Y was the best-selling car in Germany,” Dombrovskis told a press conference.

“That wouldn’t be possible without a non-discriminatory EU subsidy, while EU electric cars don’t get the same subsidy in the US, it’s discriminatory,” Mr Dombrovskis said. that we want to deal with.”

EU car manufacturers – like Volkswagen – is affected by US law, including a wide range of other products.

He said the problem also concerns a variety of goods from the “green economy” sector, including batteries, hydrogen and renewable energy equipment.

“There is a willingness on the part of the United States to engage on this issue,” Dombrovskis said.

“We hope we can resolve these issues before they become a dispute,” he said, adding that the talks would focus on whether changes to the status of companies would be made. EU companies can be made through the implementation of provisions for US law, instead of having to submit the whole thing. The Inflation Reduction Act returns to Congress for revision.

US Trade Representative Katherine Tai, asked if the issue could be resolved, told reporters she hoped the EU and the US would reach an agreement.

“On the strength of the EU-US relationship, I am confident that we will get through this,” she said after meeting Dombrovskis.