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EU wants joint solution with US on anti-inflation law soon

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Countries in the European Union were concerned this Friday about the impact of the US inflation-cutting law on European industries. “No one wants to participate in a subsidy race, but what the US has done is inconsistent with the principles of free trade and fair competition,” they said.

Countries in the European Union were worried this Friday about the possible impact of the US inflation-cutting law on European industries. subsidize local production urged them to find a joint solution as soon as possible to avoid a trade war with their Atlantic partners.

Upon arriving at the EU Trade Council in Brussels, the majority of industry players indicated they understood the US’s willingness to encourage investment in the green transition with this law. But they stressed that the law is at odds with international trade rules and undermines competition.

“This is of great concern as there are $367 billion in US subsidies, of which $200 billion do not actually comply with World Trade Organization rules, creating a bias in level playing field among WTO members. ”, French Trade Minister Olivier Becto said.

Washington plans to allocate about $400,000 million to new investments, primarily focused on boosting the country’s green energy industry and reducing polluting gas emissions. However, they prefer products made in the USA.

discrimination

EU believes this May discriminate against companies established abroad As such, we have created a specific working group with the United States to address European concerns with a view to the standard’s scheduled entry into force on January 1st.

In this sense, the French minister said the aim was to consider measures that would lead to “constructive proposals that would allow the United States to amend or interpret the law so that at least European companies could benefit”. said to be. Same conditions as in America. “

“If not, we will have to look at other measures that may be compulsory or help our companies on European soil,” said Becht, whose aim was Avoid a “subsidy race that can backfire” Or a dispute in the WTO that “is also a risk”.

“Nobody wants to be in a grant race. But what the United States has done is not consistent with the principles of free trade and fair competition. ” said Irish chief Leo Varadkar, who also hoped to agree some measure with Washington so that the EU would be treated more favorably.

The Dutch Minister of International Trade, Riesche Schleinemacher, considered the legislation “extremely concerning” and will find a solution “as soon as possible” within the framework of a working group with partners across the Atlantic. and to “absolutely avoid trade wars.” It doesn’t benefit anyone. “

“We celebrate America’s desire to increase investment in sustainability. But it caused problems because it is not compliant with the law of the WTO. For many European countries, it could have a negative impact on things like the automotive industry. ” head of its Swedish branch, Johan Forssell, said he called for action “immediately” because the law will come into force in January.

Combined with high energy prices in Europe, which are higher than those in the US and Asia, inflation U.S. aid constitutes “a threat that European production will move to more favorable markets in terms of profitability and subsidies,” said Joseph, Minister of Commerce and Industry of the Czech Republic, chair of the advice this semester. Shikera warned.

The 27 holders today will focus on searching for “ideas and solutions” that the European Commission, which represents the EU in trade negotiations, can bring to the next Trade Technology Council with the United States, he said. rice field. December.

Community vice president Valdis Dombrovskis said the meeting would be a time to assess how the working group is working and “next steps”.

Source: Biobiochile

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