EU stated that it has problems regarding Biden's Inflation Reduction Act

The EU has problems with Bidens inflation reduction Act

November 8, 2022: According to an official record, the European Union has “serious concerns” regarding the U.S. Inflation Reduction Act, which says it breaches international trade rules.

The sweeping tax, health, and environment bill was approved by U.S. lawmakers in August and included a record $369 billion to spend on climate and energy policies. The milestone package contains tax credits for electric cars made in North America and supports U.S. battery supply chains.

European officials have conceded the green ambitions associated with the package. Still, they are nervous about “the way that the financial incentives under the Act are designed,” the document, which will be presented to U.S. officers, says. The EU listed nine tax credit provisions with which it holds an issue.

Europe has voiced its concerns over the policy before. The EU’s competition chief, Margrethe Vestager, said last month that “as a matter of principle, you should not put this up against friends,” as reported by the Financial Times.

The EU is worried about new trade barriers for European electric vehicle producers. And they are not the only ones; South Korea, for instance, also raised the same concern.

Ngozi Okonjo-Iweala, the director general of the World Trade Organization, said Monday that countries need to be “very careful that whatever procedures are accepted should not be discriminatory, should not favor domestic interests.”

Speaking to Dan Murphy at the COP27 in Egypt, she recognized that some countries feel the “support that is being offered for the electric vehicles may be biased against their electric vehicle production.”

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The EU has problems with Biden's inflation reduction Act
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The EU has problems with Biden's inflation reduction Act
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According to an official record, the European Union has “serious concerns” regarding the U.S. Inflation Reduction Act, which says it...
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The Women Leaders
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