Monday's EU-US trade talks overshadowed by tax concerns on climate measure




  • In Business
  • 2022-12-05 06:06:37Z
  • By Reuters
 

By David Lawder

COLLEGE PARK, Md. (Reuters) - Top European Union officials intend to complain loudly to their U.S. counterparts at a trade meeting on Monday about the bloc's electric vehicles being cut off from tax credits in U.S. President Joe Biden's signature climate law.

The U.S.-EU Trade and Technology Council (TTC), a year-old transatlantic forum for dialogue, focused in its first two meetings on regulatory co-operation and presenting a united front against China's non-market economic practices.

But the 27-country bloc fears that the $430-billion Inflation Reduction Act with its generous tax credits of $7,500 for Tesla, Ford and other North American-made EVs, will significantly damage European automakers.

The topic is on the agenda of the TTC meeting on the University of Maryland campus in College Park, Maryland, U.S. and EU officials said.

Participants include U.S. Secretary of State Antony Blinken, Commerce Secretary Gina Raimondo, U.S. Trade Representative Katherine Tai and European Commission Executive Vice Presidents Valdis Dombrovskis and Margrethe Vestager.

In a Dec. 1 draft of a joint statement to be issued later on Monday, the two sides are to say, "We acknowledge the European Union's concerns and underline our commitment to address them constructively."

The draft document, which was seen by Reuters and may still be revised, did not set out specific measures to resolve the dispute.

"The Inflation Reduction Act will be part of the range of discussions on trade," a spokesperson for the White House National Security Council said in a statement.

The U.S. side was "committed to continuing to understand EU concerns" through a newly established task force, the spokesperson added.

The meeting would produce a "joint roadmap" on evaluating and measuring trustworthy artificial intelligence technologies as well as a task force to reduce research barriers related to quantum computing science and technology, the spokesperson said.

European and South Korean officials criticized the Inflation Act at the G20 Summit in Indonesia last month. During his state visit to Washington last week, French President Emmanuel Macron told broadcaster CBS it was a "job killer" for Europe.

Biden told Macron in Washington that there could be "tweaks" to the law to make it easier for European countries to participate in the credits.

French officials say they are hopeful an executive order from the White House could give European nations a break, without the need for seeking revisions from Congress - a move the White House wants to avoid.

(Reporting by David Lawder; Additional reporting by Foo Yun Chee in Brussels; Editing by Heather Timmons and Clarence Fernandez)

COMMENTS

More Related News

China balloon: US going to take care of it, says Joe Biden
China balloon: US going to take care of it, says Joe Biden

The president faces pressure to shoot down the craft, but China denies it is being used to spy on the US.

Democrats shake up presidential primary calendar, demoting Iowa and New Hampshire
Democrats shake up presidential primary calendar, demoting Iowa and New Hampshire

Under the new calendar, proposed based on recommendations from President Biden, candidates would face voters in South Carolina on Feb. 3, followed by Nevada ...

Tesla hikes price of Model Y after US alters tax credit rule
Tesla hikes price of Model Y after US alters tax credit rule
  • US
  • 2023-02-04 17:12:09Z

Tesla has raised prices on its Model Y in the U.S., apparently due to rising demand and changes in U.S. government rules that make more versions of the small...

Biden Administration Announces New $2.2 Billion Aid Package to Ukraine
Biden Administration Announces New $2.2 Billion Aid Package to Ukraine

The U.S. has sent over $27 billion worth of military aid to Ukraine since the Russian 'special military operation' began last year.

French, German ministers to tell U.S. don
French, German ministers to tell U.S. don't poach EU investments -sources

France and Germany's economy ministers will tell senior U.S. officials not to try to actively poach green investments from Europe when they visit Washington ...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

  • SMM Reseller Panel
    (2022-12-05 07:42:08Z)

    Well done for creating such a helpful website. Your blog is not only helpful but also incredibly creative.
    Smmheart

    REPLY

Top News: Business